Key facts
- Decathlon acquired a 10% stake in Brompton, and BA Capital acquired 5%.
- The combined value of the stakes is approximately £18 million.
- The investment aims to provide market knowledge, supply chain efficiency, and technology.
- Existing shareholders, including staff and long-term investors, will be able to sell some shares.
- Brompton bikes will be sold in dedicated sections within select Decathlon stores.
- Brompton's CEO noted the cycling market is recovering from a post-pandemic slump.
French sports gear retailer Decathlon and Chinese investment group BA Capital have acquired stakes in British folding bike maker Brompton, signaling a recovery in the cycling market. Decathlon has taken a 10% stake, while BA Capital has bought 5%, with the combined deals valued at approximately £18 million.
This investment will allow some existing shareholders, including staff and long-term investors, to realize cash from their shares. Decathlon Pulse, Decathlon's investment arm, aims to bring market knowledge and supply chain efficiency, while BA Capital will contribute expertise in the Chinese market, which is now Brompton's largest. Brompton bikes will also be featured in dedicated "Brompton corners" within a select number of Decathlon stores.
Brompton CEO Will Butler-Adams stated that the partnership is intended for learning and scaling the business while preserving its unique qualities. He noted that the cycling industry is emerging from a slump following a pandemic boom, with cities globally increasing bike lanes and interest in pollution-free transport growing. Butler-Adams also mentioned that many long-term shareholders, some with stakes for 50 years, will now have an opportunity to exit their investments.
Butler-Adams also commented on the need for greater support for entrepreneurs in the UK and called for stricter regulation of illegal ebikes, which he believes are dangerous and harmful to the market. Brompton recently reduced its workforce by about 50 to 790 employees and experienced a 7.5% decrease in bike sales for the year ending March 2025, with total sales value falling 1% to £121.5 million. However, pre-tax profits rose significantly to £130,476 from less than £5,000 a year prior, attributed to cost-cutting measures. The company anticipates a slight increase in sales for the year ending March 2026, with profits being reinvested into expansion.