Profile

Canyon is the world’s largest direct-to-consumer (“DTC”) distributor of premium bicycles thanks to its early adoption of this distribution model and its industry-leading German design and engineering capabilities. The company is active in three segments (conventional, e-bikes, parts and accessories). Its core markets are the DACH region, France, Benelux, the UK, and the US.

2.0 %
Portfolio value 06/30/2022
Investment case

Canyon is well positioned in an attractive market with double-digit annual growth over the medium term, driven by long term structural tailwinds:

  • Increasing popularity of bicycles as an environmentally-friendly mobility solution and to support healthy, active lifestyles
  • Continuous customer adoption of e-bikes supported by technological advancement (e.g., batteries, weight) and an ongoing shift toward e-bikes as a lifestyle/athletic product
  • Strategic focus on online sales (DTC), because of advantages in terms of price and choice, but also in response to consumers’ growing adoption of e-commerce
  • Government support of bicycle purchases and investment in bicycle-friendly infrastructures
  • Structural acceleration of market trends, such as e-commerce or the development of sustainable mobility.

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

  • The company 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
  • It recently entered the US and has grown strongly since, driven by increasing brand awareness and a shift to the online DTC platform.

Canyon enjoys strong brand awareness with room for further expansion, with partnerships and sponsorships supporting brand momentum:

  • Its digital marketing capabilities are at the upper end of the competitor spectrum
  • It has established successful partnerships with renowned brand ambassadors, including Mathieu van der Poel and Fabio Wigmer.

The leadership team enjoys an outstanding track record. The founder Roman Arnold remains invested as a significant shareholder alongside GBL. He also continues his involvement as Chairman of the Advisory Board.

  • Advisory Board Member 3/5*