Stagecoach Group co-founder Sir Brian Souter has backed a European electric bicycle producer.
The amount pumped into Bulgarian business Leader by Souter Investments – the investment vehicle of Sir Brian and his family – was undisclosed.
Leader makes a broad range of e-bikes including touring, trekking, mountain and folding models.
Sir Brian’s investment was made through global asset management firm The Rohatyn Group (TRG), which led the acquisition.
TRG is now a partner of Dimitar Zlatanov, Leader’s chief executive and a member of the company’s founding family.
The business was acquired from KJK Capital, a Nordic-based private equity investor.
Production ramp-up
The deal gives the Bulgarian company cash and expertise to help it rapidly accelerate its e-bike production and broaden its product offering.
Souter Investments investment director Maurice Shamash said: “We are delighted to continue to build on our relationship with TRG following our successful investment in Pet Network International, a great growth story benefiting from the global trend of pet humanisation.
“In Leader, TRG is partnering with another high growth business and regional leader in a fast-developing and growing market, with attractive macro dynamics and scope to lever their expertise to accelerate growth.”
Attractive business
Colin Clark, partner and head of Europe, Middle East and Africa private markets, TRG, said: “Leader is a highly attractive business that provides a unique and high-quality product offering in the European e-bike sector.
“The company is well-positioned to benefit from the increasing focus on healthier lifestyles, where e-bikes can offer an exercise solution across a wide spectrum of age and fitness levels, the continuing transformation of cities to cycle-friendly zones, increased demand for practical eco-friendly transportation, shared bike programmes and ‘last mile’ micro delivery.”
Flurry of investments
The deal comes hot-on-the-heels of Sir Brian’s investment in international student recruitment business SI-UK, alongside Averna Capital.
And it coincides with the acquisition of north-east of England-based engineering company ABS Precision by Souter Investments portfolio company Newcastle Tool and Gauge (NTG).
Founded in 2006, Souter Investments has poured in excess of £500 million into more than 70 unquoted companies.
The firm currently has significant investments in more than 30 businesses, acting as either lead investor or a partner for other financial sponsors.
Sir Brian and his sister, Dame Ann Gloag founded Stagecoach in 1980 with just two buses.
The Perth-based business was recently acquired by European infrastructure fund Inframobility UK in a near-£600 million deal.
Over the years Sir Brian and his family have invested heavily in businesses including Scottish bus-maker Alexander Dennis, biofuel business Argent, insurer ensure, comparison website Gocompare and New Zealand bus and ferry group Souter Holdings.
But there is also a list of no-go areas for Sir Brian – he will not invest in companies involved in alcohol, gambling, tobacco or armaments.
In addition to his business interests, he and his wife, Lady Betty, have established and funded the Souter Charitable Trust to support projects helping to ease human suffering.
Conversation