Flight Centre managing director Graham ‘Skroo’ Turner and his family have increased their stake in Australia’s largest bicycle retailer in the face of ongoing global oil shortages.
The $61.7 million deal saw a consortium of family members, led by Skroo, gain a majority stake in Pedal Group, the parent company of 99 Bikes.
Flight Centre divested its 47 per cent holding in Pedal Group to the Turner Collective, increasing the family’s ownership to 76 per cent.
Pedal Group was initially founded as a joint venture between Flight Centre and the Turner Collective in 2008, with this recent deal valuing the company at approximately $131 million.
Speaking with the Australian Financial Review earlier this week, Turner said that underlying demand has been consistent for bikes and cycling gear.
“Sales are going well at the moment because Australians love to exercise,” he said. “There’s also some short-term benefit from people trying to save on fuel.”
Founded in 2007 by Turner’s son Matt, 99 Bikes has grown into one of the region’s largest cycling retailers and boasts more than 60 stores nationwide.
Matt Turner told AFR that taking majority control of 99 Bikes would allow the business to sharpen its focus on strategy and growth.
“This has been a bit of a distraction, so now it’s time to be head down and do what’s best for the company. We can prioritise growth without needing to balance competing agendas,” he said.
The trade move follows a recent uptick in nationwide bicycle repairs and sales amid fuel supply disruptions and subsequent jumps in oil pricing.
In an interview with ABC yesterday, general manager of Bicycle Industry Australia Peter Bourke said that some of the organisation’s members have reported an increase in e-bike sales and bicycle repairs.
“They may have had the bike in the shed since COVID and now they’ve gone, ‘Hey, that was a good idea during COVID, let’s get it out and get it going again.’ So we’ve seen a market demand in the workshop for servicing and upgrade,” he said.
