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Published
Oct 17, 2016
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After splurging on suitcases, is LVMH shopping for bicycles?

Published
Oct 17, 2016

The scoop reported by the La Tribuna di Treviso, a local daily in the northeast of Italy, has been ricocheting around the globe. LVMH is reportedly looking at an acquisition of the high-end bike manufacturer Pinarello, based in Treviso, Italy.

According to the newspaper, the colossus of French luxury, which just added German Rimowa suitcases to its fold, may now diversify into the sports business. The news has this small Italian town near Venice all abuzz, which already has a place on the map as the stronghold of Benetton.

 

L'un des derniers modèles du fabricant italien - Pinarello.com



“Negotiations have started, being led on behalf of the company by a specialized firm in Milan, and could be finalized soon,” the newspaper claims.

“It seems that LVMH is investing monies in opening a new luxury front in sports, wellness and recreation. And in the Treviso company, it has identified a bicycle brand to buy or hold a majority stake,” says the newspaper.

The Pinarello manufacturer has a long history and supplies bikes to many of the major professional teams. Founded in 1952 by cyclist Giovanni Pinarello, the company Cicli Pinarello got its launch as a small artisan laboratory for manufacturing bicycles. The brand started to acquire a reputation through its debut in the Tour of Italy in 1975, furthered by its presence at the Tour de France.

In 1988, the son of Giovanni, Fausto Pinarello, took over as head of the SME, which currently generates a turnover of more than EUR 50 million, three quarters of which are sales outside Italy.

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