Profile

Canyon is the world’s largest DTC distributor of premium bicycles thanks to its early adoption of a DTC business model and its industry-leading German design and engineering capabilities. Its core markets are DACH, France, Benelux, United Kingdom and United States.

1.2 %
Portfolio value 09/30/2021
Investment case

Attractive market expected to grow at a double-digit pace per annum over the medium term, driven by long-term structural tailwinds:

  • Increasing popularity of bicycles (i) as an environmentally-friendly mobility solution and (ii) to support healthy, active lifestyles
  • Continuation of customer adoption of e-bikes supported by technological advancement (e.g. batteries, weight) and an ongoing shift of e-bikes as a lifestyle / athletic product
  • Shift to online direct-to-consumer (DTC) channel (Canyon’s focus) due to price advantage, choice and increasing customer adoption of e-commerce
  • Governments expected to support bicycle purchases and invest in bicycle-friendly infrastructures

Positive effects from Covid-19 leading to a structural acceleration (beyond 2020/21) of market trends (e.g. online, green mobility).

Canyon has optimal positioning in its core markets with significant upside potential in more nascent markets:

  • Canyon is well-positioned in conventional bikes in its core European markets. Despite a relatively later start in e-bikes, Canyon is now catching up with very positive results.
  • Canyon recently entered the US and has grown strongly since, driven by increasing brand awareness and a shift to the online DTC platform.

Strong brand awareness with room for further expansion, with partnerships and sponsorships supporting brand momentum:

  • Digital marketing capabilities are at the upper end of the competitor spectrum
  • Successful partnerships with renowned brand ambassadors including Mathieu van der Poel and Fabio Wigmer

Outstanding track record of the leadership team:

  • Founder and Chairman Roman Arnold is leading the team and will remain invested as a significant shareholder alongside GBL. He will continue his involvement as Chairman of the Advisory Board.
  • Advisory Board Member 3/5*