Sigma Sports sells minority stake to Primary Capital

Online and physical bicycle retail giant Sigma Sports has sold a minority stake in its business to UK-based private equity group Primary Capital.

The latest in a string of bike industry equity deals, the investment group buys into Ian Whittingham and Jason Turner’s near 30-year old business, which has built a particularly strong online retail presence, but is also looked upon as having one of the country’s best showrooms.

As an aside to its large Hampton Wick showroom, Sigma doubled down on physical retail by opening a 4,000 square foot Oakham branch last year. A further collection point in Esher is available for click and collect services. Such has been the Sigma Sports’ growth trajectory in recent years the firm has featured in the Sunday Times International Track 200 list of the fastest growing companies in the UK.

The stores have built a reputation not just around traditional retail but on in-store experiences and servicing too. Indoor cycle parking, bike fitting, workshop classes, video analysis, in store events and plenty more services add revenue streams to the business.

Global mid-market investment bank Alantra advised the shareholders and management on the deal, with debt funding provided by HSBC.

Andy Currie, Managing Partner at Alantra, led the deal supported by Robert Young and Oliver Lawson, with debt advisory provided by Guy Taylor.

Andy Currie, Managing Partner, Alantra, said: “Sigma Sports has established itself as a leading player in the cycling industry and is the go-to retailer for premium brands. The company prides itself on the quality of its products, the content it produces and creating a community for customers. The company has recently experienced rapid growth, and with Primary’s support, we look forward to seeing Sigma Sports continue this growth story.”

Richard Parker, HSBC UK Relationship Director East Midlands Corporate Banking, added: “Sigma Sports has been a longstanding client of HSBC UK’s for over a decade. The company has seen substantial growth so far in 2021 with an increased focus on product development and expanding its physical footprint across the Midlands as demand for its products grows. We were pleased to support Sigma Sports with a share sale of its business to Primary Capital and wish the team the best of luck as they embark on this new chapter. HSBC UK is committed to championing businesses in the Midlands.”