News
Evans secure major equity investment
Mark Sutton Apr 7 2008, 10:05am
Comments (5)
Active take out majority stake in the UK's largest specialist
Evans Cycles has received a major investment from Active Private Equity. Active has acquired a majority stake in the business via a combination of acquisition and growth capital. The current executives - Mike Rice, Mark Smith and Andy Terrington - bring considerable management experience and will retain their management roles, as will non-executive director Gary Smith. Gary, Mike and Mark retain very significant minority stakes in the business.
The retailer has grown significantly in the last five years, increasing its network of stores from 11 to 31 and growing its retail footprint nationwide from a traditionally London and South East Base. The new capital into the business will allow Evans Cycles to continue their store expansion momentum and at the same time invest in the infrastructure to take the business to the next level.
“It’s business as usual for us” says managing director Mike Rice, “Active are 100 per cent behind the management team, our staff and the way we operate. For our suppliers and customers there will be very little change.
We are all excited about the future opportunities for Evans Cycles.
Active was introduced to the transaction by Nick Evans, who will become the Executive Chairman of the business. An active cyclist himself, Nick has an impressive track record of performance improvement at store and multi channel retailers such as Shoe City, Cotswold Outdoor, Mappin and Webb and Watches of Switzerland and also has cycling sector experience.
Nick Evans, who led the transaction on behalf of Active alongside Bryan Vaniman, said: "Evans Cycles has grown the top line impressively to become the UK's leading specialty retailer in the cycling sector - an exciting market with strong underlying growth. The multi channel brand is well established and the sales teams provide industry leading range, knowledge and service. We are looking forward to further developing the company with the current management and shareholders."
See the May issue of BikeBiz for updates
Comments
“Evans investment”
Posted by: Philip Hunt - Apr 7, 11:47am
I'm quite underwhelmed by the motherhood statements from the investor and the investee. Sounds like a media release to me. How have they grown as they have in such a short time? What is happening in the market to make them so successful? Is this matched by any other retailers? What is their market share in the UK? Are they a big fish or a little fish in a big UK pond?
“Re: Evans investment”
Posted by: MarkSutton - Apr 7, 12:23pm
I'll get the majority of this answered for the May edition of BikeBiz. Am speaking to some Evans Execs at the moment about many of your questions.
“Re: Evans investment”
Posted by: Christian Borrman - Apr 8, 6:20am
I doubt they will be able to expand if they just continue "business as usual" as per this press release: Everyone I know goes to Evans as a newbe, or because the stores are initially conveniently located, but, like myself get bored of their random customer service to the point of going out of your way to find a local store and/or use the internet by the time they are spending serious money and buying multiple bikes & accessories. Let’s hope they can grow on the back of "my first sub £500 bike" and the odd last minute accessory.
“Re: Evans investment”
Posted by: Clive - Apr 8, 11:53am
Christine - You refer to the "my first sub £500 bike and the odd last minute accessory" market. Surely that is by far the most significant section of the industry? Big-spending enthusiasts may feel like important customers, but how much of the market do they actually represent?
“Re: Evans investment”
Posted by: roel - Apr 8, 1:45pm
its well known in the industry that Evans has been struggling for some time with a large debt overhead partly caused by over expansion which aimed to attract the investment take over they have now secured, and partly by wooly management and over staffing at many of their stores
its good to see a firm backer behind Evans, who are a fair competitor and do not enter into the heavy price discounting of the large on-line retailers like chain reaction, who are rapidly bleeding the LBS to death
Evans market is the entry level MTB and commuting / hybrid bikes and their key locations in London are well placed to serve London cyclists