British folding bike maker Brompton has sold a large stake to French sporting goods retailer Decathlon and a Chinese venture capital firm, in a deal designed to pay for brand expansion in France and China, now its biggest market.
The transaction, which is reported to be worth £18 million, gives Decathlon 10% and BA Capital a 5% stake. The Shanghai-based investor is best known for backing Labubu maker Pop Mart and Laopu Gold, a jewelry brand dubbed the “Hermès of gold” in China.
Founded in London in 1975, Brompton is famous for its three-piece folding bikes, which are hand-built in its main factory in west London and exported around the world to China, America and Europe. Founder Andrew Ritchie remains the largest shareholder, while the company’s chief executive, Will Butler-Adams, also holds a stake.
Butler-Adams, who took the top job in 2008, said the new money will allow employees and long-term investors to get cash from the sale of shares, while bringing market expertise and technology to new investors. The partnership is expected to accelerate growth in China, which has emerged as the company’s biggest market in recent years as the company retreats from the more cautious United States.
The deal follows upheaval in the wider bicycle industry, which has been grappling with falling demand since the end of the pandemic, which has forced many manufacturers to cut prices sharply. The Brompton was not immune. Last year the company reported a pre-tax profit of just £130,500, up from a paltry £4,602 the previous year but still a fraction of its previous earnings.
However, the manufacturer is still expected to produce more than 100,000 bikes a year, with prices for their top models reaching around £6,000. More than 1.2 million Bromptons have rolled off the production line since the first one was built over a century ago.
“For more than five decades, Brompton has opened up urban freedom and joy to riders around the world. While we’re proud of the impact we’ve made, our journey has only just begun,” said Butler-Adams. “Together with Decathlon, another family business built over a century, we are ready to achieve more.”
The investment from Decathlon, made through its investment and innovation arm Decathlon Pulse, will see the signature folding bikes sold in “Brompton corners” in several of the retailer’s French stores. According to Brompton’s own announcement, it will also help the company move forward in the fast-growing electric bike market.
The move marks the company’s second equity event in recent years, following its first capital raise in 35 years backed by BGF, and underlines a renewed ambition after a difficult few years. Time is buzzing with a recovering market: analysts at Mordor Intelligence value the UK cycling sector at around 554 million dollars by 2026, with annual growth forecast to continue throughout the decade.
“The Brompton combines a unique combination of performance, durability and community involvement that perfectly aligns with our approach,” said Franck Vigo, CEO of Decathlon Pulse. “This partnership is about scaling that model while maintaining what makes Brompton truly unique.”
