Good news for owners of trendy Cowboy bicycles: the brand and the bicycles will continue to exist. French bicycle group Rebirth is set to acquire 80% of the Brussels-based bicycle company and will invest 15 million euros to get the manufacturer of connected e-bikes back on track.

Cowboy, which lost 20 million euros last year and 10 million euros this year, had already signed a memorandum of understanding in August with Rebirth Group Holding, a company with which it already collaborates because it assembles their bikes. According to French newspaper Le Figaro, the deal is expected to be finalized by mid-October.

Break-even foreseen for 2027

The takeover means that Cowboy will essentially lose its independent control. Still, it had been clear for some time that urgent action was needed to improve profitability and restore customer confidence.

Rebirth now wants to reduce Cowboy’s production costs, for example, by centralizing the purchase of tires for all the group’s brands. The use of more standard parts is also being considered, whereas Cowboy developed everything itself from the outset. “We should be able to save 2 million euros,” says Rebirth CEO Grégory Trebaol.

“This year, the company will still make a loss of 8 to 10 million euros on a turnover of 20 to 22 million euros,” dixit Trebaol. “But turnover should rise to 40 million euros in 2027, the year in which we will break even.”

130 points of sale

Rebirth, as the name suggests, specializes in revitalizing and breathing new life into historic bicycle brands, such as Peugeot, Gitane, Mantra, Angell, and Solex, for example, by incorporating modern technology. It has factories in Romilly-sur-Seine, near Paris, and in Saint-Lô, in Normandy.

In addition to reviving these brands, the company’s control of the entire chain is a significant asset: it handles production, assembly (with many parts made in Asia), design, distribution, and after-sales, enabling it to save costs and respond more quickly to market changes.

For example, the acquisition of Cycleurope gave them ownership of Vélo & Oxygen, a network of around 85 stores. Through partnerships with French bicycle brand Ovelo and select dealers in Belgium, the Netherlands, and Germany, it currently has 130 points of sale.

Its presence in these countries, as well as in Switzerland, is set to expand further. Additionally, Rebirth is involved in the rollout of bike-sharing systems in various French cities and regions, including Châteaubriant, Grasse, and Île-de-France.

Recession after the boom?

Now that Cowboy is primarily owned by a French company, another Belgian bicycle manufacturer is facing the challenges of the bicycle industry, such as increasing competition from non-European manufacturers.

Ridley, which acquired Eddy Merckx Cycles and the mountain bike brand Nukeproof, has been majority-owned by the Dutch investment group Torqx Capital Partners since 2023. Minerva and Stella also went bankrupt due to poor economic decisions. Thompson and Achielle are still in Belgian hands, as are Norta, Oxford, Åska, Ahooga, Granville, L’Avenir, etc.

The newspaper De Standaard also notes that large listed Belgian companies, such as GBL, D’Ieteren, and Colruyt, have entered the sector, respectively through Canyon, Lucien, and Bike Republic, but that they have not yet derived significant financial benefits from this.

The newspaper De Tijd also points out that, based on currently available figures for Cowboy’s estimated value, the 7,800 private investors who invested their money in Cowboy through various crowdfunding campaigns have virtually lost their money.