In a move that signals continued evolution within the high-end bicycle market, Factor Bikes has sold a majority stake to two Chinese investors, though the company's CEO Rob Gitelis remains firmly at the helm and as a major shareholder.
The investors are VSI, a private equity fund that will become the largest shareholder with a 31.72% stake, and Zhonglu Holdings (through its subsidiary Zhonglu Advantage Global Investment), which will hold 21.15% equity. The total investment amounts to approximately US$33.16 million.
"The transaction was two current shareholders that were not an active part of the business selling their shares to two new shareholders that are also not taking an active role in the business," Gitelis explained to Escape Collective from his office in Taiwan. "One is a private equity fund. Another one is a publicly traded investment company from China."
Gitelis was quick to clarify misconceptions about the deal: "I think people, I think a lot of the headlines try to make it sound like a Chinese company had bought Factor, which is not the case. The private equity fund is the largest shareholder now. The Chinese company is the third largest shareholder, but we're all working in unison together."
Importantly for Factor's future direction, Gitelis confirmed: "I didn't sell any shares... I'm the second largest shareholder, still. Chris Froome didn't sell his shares either."
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