London-based private equity firm Bridgepoint is understood to be in exclusive talks to buy online multisport retailer Wiggle for a reported £180 million. It is also understood that Bridgepoint beat off competition from rival Swedish private equity firm EQT.
Back in October, speculation surfaced on a potential float for Wiggle. At the time, Wiggle’s Chief Executive, Humphrey Cobbold, was quoted as stating that an IPO (Initial Public Offering) is a “serious option”. At that time, it was also speculated that Wiggle’s current owners Isis Equity Partners may choose to quietly sell to another buyout firm.
Despite a challenging economy, Wiggle has successfully tapped into the growing cult around cycling and triathlon – as bikes replace sports cars and the golf course in the affections of middle-aged men in particular. The growing popularity of triathlon and open water swimming has seen the company gain a strong foothold with the wider endurance sport community.
So, while the UK retail environment remains challenging, the rise of the Mamils (Middle-Aged Men in Lycra) has seen Wiggle capitalize on the growing popularity of cycling. Boosted by international sales, for the year ended 31 January, Wiggle’s revenue was £86.8 million, up 55.6% on the previous year. Operating profits also rose, from £7.1 million to £10.2 million.
It is understood that Wiggle’s management remain in negotiations with Bridgepoint over the size of its stake in the online retailer. Bridgepoint also owns Pret a Manger and Fat Face, and would be well placed to help Wiggle expand its international reach further.
