British folding bike brand Brompton has sold a stake in the business to sports retailer Decathlon as it aims to accelerate into markets overseas.
Chinese venture capital firm BA Capital, which was an early backer of viral soft toy brand Labubu and has investments in Pop Mart, has also acquired a small shareholding.
Decathlon has acquired a 10% stake in the business through its investment arm, Decathlon Pulse, and BA Capital has taken 5%.
The deal is understood to collectively be worth about £18 million.
Brompton makes a range of compact bikes that can be folded down into three parts and are designed to be lightweight and portable and appealing to commuters and people moving around cities.
It has more recently launched a range of electric bikes which are helping fuel growth in Europe and North America.
The bikes range from £999 up to £5,799 for the ultralight titanium e-bike.
The company was founded in London in 1975 and has factories in west London and Sheffield, with around 70% of production exported to markets around the world.
Decathlon Pulse said it intends to back Brompton’s next phase of expansion, including accelerating into growth markets like Germany and China, while preserving the “Handmade in London” heritage.
Selected Brompton models will be sold in dedicated spaces in some Decathlon stores.
BA Capital said the Chinese market is increasingly driven by demand for experiences and health and outdoor lifestyles are becoming more important.
Brompton chief executive Will Butler-Adams said: “For over 50 years, Brompton has been dedicated to helping people move around cities in a way that is simpler, more flexible and more enjoyable.
“As demand for smarter and more sustainable urban transport continues to grow, we see a tremendous opportunity ahead.
“Decathlon Pulse and BA Capital bring complementary expertise, global networks and a shared belief in our mission.”
Michael Zang, managing partner of BA Capital, said: “The rise of experience-driven consumption is reshaping China’s consumer market.
“As health awareness grows and outdoor lifestyles gain momentum, cycling is expanding beyond sport into everyday occasions such as commuting, travel, and social activities.”
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