Harvest Partners Acquires Stake in Cycle Gear
February 1, 2005
Filed under Features
Harvest Partners, Inc., a New York-based private equity investment firm specializing in management buyouts and growth financings of middle-market companies, says it has acquired an equity interest in Benicia, California-based Cycle Gear, Inc., a retailer of motorcycle and ATV riding gear, parts and accessories. Terms were not disclosed.
This is Harvest's third consumer products deal in the past year, following the July 2004 acquisition of Evenflo Company, Inc. and the November 2004 purchase of Levlad, Inc. and Arbonne International Inc., manufacturers of personal care products.
Cycle Gear has pursued an aggressive store expansion campaign in recent years, growing from six stores in the United States in 1998 to 45 stores in 2004. Cycle Gear CEO David Bertram - a motorcycle industry veteran and former champion racer - the management team, and the company's ESOP have maintained their significant ownership in the company.
Focused on specialty services, consumer, manufacturing and value-added distribution businesses, Harvest Partners has over $1 billion of invested and committed capital under management from its limited partners, which include numerous pension funds, domestic and international industrial corporations, and various financial institutions. The company was founded in 1981.
"Dave Bertram and his team have done an excellent job refining the unit economics while growing the store base to 45 stores, all of which are profitable and were so in their first 12 months of operations,” said Merrick Axel, Harvest Vice President. “The Cycle Gear concept has proven the ability to travel with successful openings in 13 states, and with Harvest's capital, management will be able to achieve a significant store rollout plan over the next five years."
Visit www.harvpart.com for more information about Harvest Partners.