Inflexion acquires Enviolo in USD 245m buyout

The deal values the company at USD 245m, a source close to the situation told Unquote.

Selling shareholders include US-headquartered alternative assets manager Kayne Anderson Capital Advisors, the same source confirmed.

Kayne Anderson was the senior lender to former Enviolo parent company Fallbrook, which underwent Chapter 11 proceedings in the US in February 2018, according to a statement on Enviolo's website. The process saw Kayne Anderson take majority control of Fallbrook and Enviolo, although the operations of the latter remained unaffected. Fallbrook emerged from the proceedings in June 2018, according to the same statement.

Inflexion said in a statement that the company is well-positioned to benefit from the growing popularity of e-bikes brought about by the ongoing transition towards smart and sustainable urban mobility. The GP also expects to support the company with its national and international expansion.

Inflexion is currently deploying equity via funds including Inflexion Buyout Fund V, which held a final close in May 2018 on GBP 1.25bn. The vehicle typically deploys equity tickets of GBP 10m-200m.

The GP registered Inflexion Buyout Fund VI in February 2021, according to Unquote Data. The fund has a GBP 2bn target.

The investment was led from Inflexion's Benelux office in Amsterdam, which is headed by Sander Ruijter.

The GP's other Dutch portfolio company is Calco, an outsourced IT recruitment and training firm that the GP acquired via Inflexion Buyout V in February 2018; the deal marked the GP's first platform investment beyond the UK.

Other sponsors that have backed the electric bike and electric motorbike market in recent months include Creandum, which took part in a USD 46m investment in Sweden-based electric motorbike component producer Cake in September 2021. Elsewhere, Naxicap acquired Germany-based e-bike manufacturer and retailer MyStromer in May 2021; Bolster Investment Partners acquired Netherlands-headquartered e-bikes and electric cargo bikes producer Optima Cycles in June; and Borromin Capital acquired Germany-based bikes and e-bikes retailer Little John Bikes in the same month.

Company
Founded in 2006, Enviolo produces electric bike parts for retailers and original equipment manufacturers (OEM). It specialises in transmission systems for e-bikes that allow cyclists to adjust the gear ratio. The company was known as NuVinci Cycling until a rebrand in January 2018 that saw it change its name to Enviolo.

In addition to its Amsterdam headquarters, the company has operations in Austin, Texas. Its network of bike manufacturers currently comprises more than 100 OEMs. Enviolo posts revenues of USD 100m, according to a report from Het Financieele Dagblad, representing a fourfold increase over the past three years.

People
Inflexion – Sander Ruijter (partner); Joost Storms (investment executive); Vincent Wilhelm (investment analyst); Richard Wootten (assistant director).
Enviolo – David Hancock (CEO).

Advisers
Equity – Latham & Watkins (legal); NautaDutilh (legal); Stepstone Corporate Finance (corporate finance).
Vendor – Ropes & Gray (legal); Lazard (corporate finance).

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• Topics
• Buyouts
• Industrials
• Benelux
• Netherlands
• Inflexion Private Equity