According to an article in the British newspaper, the Daily Mail, the same luxury goods conglomerate LVMH that’s currently in negotiations to purchase Pinarello, also has its eye on buying Rapha too.
LVMH currently owns the luxury brands Louis Vuitton, Christian Dior, Moët & Chandon, Hennessy and others, is reportedly interested in expanding its portfolio into sports and leisure segments.
According to the report, Rapha posted had a pre-tax profit of £1.1 million for the year to January 31, 2016. Rapha spent four years as the official apparel provider of Team Sky, a partnership that came to the end of the 2016 season. It also supplies the Canyon-SRAM team.
Helped by the boom in road cycling over the past decade or so in the UK and elsewhere, Rapha is expected to achieve £48.8 million in sales by the year’s end.
Earlier this year, LVMH together with the family holding company of CEO Bernard Arnault, took a stake in American private equity house Catterton, which specialized in investing in mid-market companies.
The new business, L Catterton, has investments in businesses including activewear brand Sweaty Betty and pet food manufacturer Lily’s Kitchen, while its holdings in the sports sector include compression clothing maker 2XU, the Peloton at-home fitness bike, sports drinks and supplements manufacturer X2 Performance, and the 360fly action camera brand.
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