Bridgepoint-backed Wiggle bolts on Chain Reaction Cycles

Katharina Semke
16 February 2016

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Bridgepoint-owned cycling accessories retailer Wiggle has acquired competitor Chain Reaction Cycles.

Both companies hope the merger will strengthen their market position by broadening their offering and attracting new brands. Wiggle recorded a turnover of €234m in 2014, while Chain Reaction Cycles' was €197m.

Previous funding
In December 2011, Bridgepoint backed the £180m SBO of Wiggle in a deal that saw the GP acquire the online cycling and tri-sports retailer from previous owners Livingbridge.

Livingbridge – then Isis Equity Partners – previously owned a 65% stake in the company, having invested £12.25m in August 2006. Livingbridge reaped a 15.1x return on the investment and 69% IRR.

Companies
Wiggle was founded in 1999 as a cycling accessories retailer but by 2003 expanded into the running and swimming retail sector. The company sells its products in 88 different countries.

Wiggle employs nearly 500 people in its Portsmouth office and also has a London office.

Chain Reation Cycles was founded as a local shop in 1984 and is headquartered in Ballyclare. The online bicycle store sells sport and road bicycles and cycling products in 100 countries. It has 450 staff.

People
Bridgepoint – Patrick Fox (senior partner); Xavier Robert (partner), Nick Heslop (director).
Wiggle – Stefan Barden (CEO).
Chain Reaction Cycle – Chris Watson (managing director).

Advisers
Aquirer – Travers Smith, Paul Dolman, Stephen Whitfield, Jeremy Walsh, Matthew Smith (legal); Andrew Callaghan, Amie McFadzean (tax).