BikeBiz Bicycle and cycling retail news
Brompton Bicycle, the British folding bike brand, could be set to sell a £20 million stake in the company, according to Sky News.
Reports suggest the company has asked its shareholders to approve an investment of nearly £20 million from the Business Growth Fund (BGF), which is backed by multiple high street banks.
It is understood that the investment, if agreed, would value the company at around £180 million.
In December last year, the brand celebrated building its millionth folding bike, but recently has faced the same challenges as the rest of the industry with increased supply chain and manufacturing costs.
One source told Sky News the deal between the BGF and Brompton was “not certain” to be approved by Brompton’s register of shareholders.
In a recent interview with BikeBiz, Brompton CEO Will Butler-Adams said the bike business should talk not in terms of toys, but instead tools for sustainable urban transport.
He believes that, if the industry can weather the current storm, it will be at the forefront of solving some of the biggest issues facing cities across the world.
He added: “We’ve been slightly recreational and very nice to have. But we are moving from that to being super-relevant.
“Particularly when you introduce electric drive and cargo bikes. That whole opportunity for the bicycle, combined with electric drive, to have such an impact on how people live in cities all over the world is really exciting.”
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This belief is backed up by plans of a potential new “revolutionary” factory, which the company unveiled last year.
The 100-acre site on a floodplain in Kent would be redeveloped in partnership with Ashford Borough Council and, if approved, would open in 2027 with its current West London home operating until 2030.
The site would also incorporate a visitors’ centre, museum, educational space, and café.
