South African billionaire Ivan Glasenberg set to acquire Italian bicycle maker, Pinarello

South African billionaire Ivan Glasenberg is on the brink of finalizing a deal to acquire Cicli Pinarello Srl (Pinarello), an Italian bicycle maker, as part of his strategic efforts to diversify his wealth beyond his stake in Glencore.

Glasenberg, the former CEO of Glencore, the world’s largest commodity trader, aims to tap into the automotive industry by expanding his portfolio of high-end biking gear.

While the deal is still pending, Glasenberg’s acquisition of Pinarello is expected to value the esteemed bicycle manufacturer at approximately €190 million ($273 million) in terms of enterprise value, encompassing debt and equity.

Pinarello is presently owned by L. Catterton, a U.S. private equity fund with $30 billion in assets under management. The private equity fund, backed by the renowned French luxury group LVMH Moët Hennessy Louis Vuitton, acquired a majority stake in Pinarello in 2017.

Renowned for its use by top racers worldwide, the Pinarello brand has an illustrious history of accolades, ranging from Olympic gold medals to prestigious stage races.

Notably, Pinarello bicycles have triumphed in seven Tour de France races, two Giro d’Italia competitions, and one Vuelta, as well as numerous national titles and classic events like Paris-Nice, which the brand has dominated in recent years.

Ivan Glasenberg has a net worth of over $7.8 billion

With a net worth of $7.83 billion, Glasenberg stands among the world’s wealthiest individuals, ranking 283rd on the Bloomberg Billionaires Index. The bulk of his fortune stems from his 9.75-percent stake in Glencore, currently valued at $6.63 billion.

Additionally, Glasenberg possesses cash holdings totaling $1.2 billion, significantly surpassing Pinarello’s enterprise value. His journey to success began with an MBA from University of Southern California, after which he started his career as a marketer in the coal department of Marc Rich & Co. in South Africa.

Following the company’s transformation into Glencore in 1994, Glasenberg played a crucial role in its development and took the helm as CEO from 2002 until his retirement in 2021. Glencore went public in 2011.

The impending acquisition of Pinarello marks an exciting new chapter for Glasenberg, expanding his business ventures into the automotive industry.

As the billionaire entrepreneur diversifies his portfolio, the global cycling community eagerly anticipates the potential synergies and advancements that may arise from this collaboration between the South African billionaire and Italian bicycle maker.