Profile

Canyon is the world’s largest direct-to-consumer (“DTC”) manufacturer of premium bicycles thanks to its early adoption of this distribution model and its industry-leading German design and engineering capabilities. The company is active in three segments (conventional, e-bikes, parts and accessories). Its core markets are the DACH region, France, Benelux, the UK, and the US.

2.6%
Portfolio value 09/30/2023
Investment case

Canyon operates in the attractive premium bike market with double-digit annual growth, driven by long term structural tailwinds:

  • Increasing popularity of bicycles, especially in Canyon’s premium segment, as an environmentally-friendly mobility solution and to support healthy, active lifestyles
  • Continuous customer adoption of e-bikes supported by technological advancement and an ongoing shift toward e-bikes as a lifestyle or athletic product
  • Continued focus on online Direct-To-Consumer channel ("DTC"), with advantages in terms of price and choice, but also in response to consumers’ growing adoption of e-commerce

Canyon has become a true trademark for sports and performance bikes, supported by its drive for innovation:

  • Strong positioning in its core European markets such as Germany, UK and Benelux that have grown at high double digits in the last years
  • Renowned performance heritage through successful partnerships with sports personalities such as Mathieu van der Poel and Fabio Wibmer
  • Outstanding track record of the leadership team, with founder Roman Arnold remaining invested as a significant shareholder alongside GBL and continuing his involvement as Chairman of the Advisory Board

Canyon has embarked on new initiatives with significant upside potential:

  • Broadening the business outside of the large European bike countries, where Canyon bikes are in high demand
  • Penetrating the US, where there is good traction driven by an increasing brand awareness and the unique DTC offering
  • Growing in e-bikes, with a focus on sports and urban categories, which is off to a promising start
  • Improving the customer journey through an omnichannel experience
  • Developing the sports gear offering
  • Advisory Board Member 3/5*
  • Audit Committee 3/5*
* Number of GBL's representatives in statutory bodies in relation to the total number of members. Governance information is dated 06/30/2023, except where superseded by more recent public disclosures.
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