Turner family takes control of 99 Bikes with $61.7m buyout of Flight Centre stake
The family of Flight Centre managing director Graham Turner has lifted its holding in Australia's largest bicycle retailer 99 Bikes to 76 per cent, acquiring Flight Centre's near-half stake for A$61.7 million. The deal values parent company Pedal Group at approximately A$131 million — well below the A$252 million peak set during the pandemic-era cycling boom.
Transaction snapshot
Deal value: A$61.7 million for an approximately 47 per cent stake, implying a total valuation of around A$131 million for Pedal Group.
Deal multiples: Approximately 19 times earnings, or closer to 27 times after tax, based on Pedal Group's A$3.3 million profit contribution to Flight Centre last year.
Deal type: Secondary stake acquisition from corporate joint-venture partner, funded by a mix of equity and debt.
Investors: Turner family, via its Turner Collective consortium. The family will contribute A$26 million in equity, with Pedal Group expected to carry average debt of about A$43 million once the transaction completes. The remaining equity in 99 Bikes is held by management and staff through an employee share scheme.
99 Bikes was founded by Matt Turner in 2007 and now operates 67 stores in Australia, plus outlets in New Zealand and Britain. The product range runs from A$16,000 carbon-frame racing bikes to entry-level accessories. The group also owns wholesaler Advance Traders, which supplies both 99 Bikes outlets and independent retailers. Online sales account for 10 to 15 per cent of turnover.
Flight Centre's involvement dates to 2008, when it acquired Advance Traders and established the joint venture with the Turner family. The travel group engaged Grant Samuel in September to canvass interest from private equity firms, trade buyers and wealthy families. When no suitable offers emerged, the Turners stepped in to buy the 47 per cent stake.
Pedal Group posted losses until the 12 months to June 2025, when it resolved oversupply issues that had built up after pandemic-era demand moderated. For FY25, it generated A$330 million in sales and a net profit of A$5.9 million, compared with a A$2.3 million loss on A$307 million in revenue the prior year. The broader sector has faced pressure from excess inventory and thinner margins, as well as market share erosion from online-focused competitors including Pushys, Reid and CCache.
Graham Turner said underlying demand for bikes and cycling gear remained resilient, with some short-term tailwind from consumers trying to save on fuel. Matt Turner said majority control would let the business sharpen its strategic focus without the constraints of a corporate partner, describing Flight Centre's involvement as a distraction. He said 2 per cent margins were acceptable and profit was not the primary focus.
The Turners plan to open about five new 99 Bikes stores annually, a strategy expected to lift sales by between 5 per cent and 10 per cent each year.
