L Catterton to kick off Pinarello sale early next year

Micaela Osella
09 December 2022

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Bicycle manufacturer Pinarello will hit the Italian auction pipeline in a process guided by Houlihan Lokey, a source close to and a source familiar with the situation said.

Its private equity owner L Catterton recently appointed the advisory firm to launch a sale process for the portfolio company in the coming months, the sources said.

The sellside adviser will distribute teasers to private equity firms and strategics between the end of January and the beginning of February, the source close said.

Pinarello will be marketed off EUR 10m 2022 EBITDA, both sources said. In the fiscal year 2021/2022 Pinarello generated EUR 84m in revenue, the source close said, adding that it operates in a niche market with strong EBITDA margins.

Under L Catterton's tenure Pinarello has seen tremendous growth organically, on the back of a high demand for its products over the years, the source familiar said, adding that the environment pushed up the company's value.

L Catterton decided to consider a sale after receiving inbound interest from undisclosed parties, this source also said, without further elaborating.

The sponsor's investment in Pinarello has reached its maturity, the source close added, noting that strong liquidity in the market has also influenced the decision to sell at this time.

The transaction will entail a majority stake in the business owned by L Catterton since December 2016, while Fausto Pinarello of the founding family will continue to retain a substantial minority, the sources said.

At the time of the deal, Pinarello had revenues of EUR 52m in the 2015/16 financial year, as reported.

L Catterton was advised by Alantra for financial matters as well as in finding financing for the deal. NCTM advised L Catterton on the legal side. KPMG performed due diligence, as reported. Meanwhile, the Pinarello family was advised by Andrea Cittero and Studio Casonato. Studio Legale MRCP was the legal adviser.

Pinarello and L Catterton did not return a request for comment. Houlihan Lokey declined to comment.