‘A new 4.0 factory will be established in 2026’

Grégory Trébaol, founder of the Rebirth Group, has become the new owner of Cycleurope Industries SAS, based in Romilly-sur-Seine, France after the Grimaldi Group decided to divest this unit. In this interview with Bike Europe, the executive explains why he wanted to acquire Cycleurope. He also discusses the strategy and investments planned for the next two years.

Can you tell us about the origins of the acquisition of Cycleurope Industries SAS?

The company Cycleurope was part of the Grimaldi Group, along with two other factories in Sweden and Italy. In recent years, the Grimaldi family decided to restructure the group by granting autonomy to Bianchi in Italy and reorganising its distribution. On its side, the Cycleurope factory in Romilly-sur-Seine was entering a disengagement strategy. The divestment process began in 2023, but we were unaware of it. In the spring, when we were informed through the conciliation process initiated with the group’s banks, we notified the Grimaldi Group shareholders and Jérôme Valentin, the general manager of Cycleurope Industries, that we were interested in taking over and ready to build a genuine industrial project.

What were your motivations for acquiring the company?

We were looking for an industrial site that would allow us to develop our 2025-30 strategy. Beyond bicycle manufacturing, the Rebirth Group aims to play a major role in the production of components and new technologies. It was very insightful to talk with employees with over 30 years of experience at the company and to discover that the Romilly-sur-Seine site used to manufacture frames, luggage racks, mudguards, and other components. This is exactly what we aim to do. Furthermore, the brands Gitane and Peugeot Cycles have a strong identity, similar to Solex and Matra. Additionally, Cycleurope has also developed the Vélo & Oxygen network, which currently has 85 affiliates. For us, this fits into the logic of expanding our brands. We will need to redevelop the concept and services, but we have already been working on it for six months.

How was the takeover financed? Did you receive support from the government plan France Velo which is supporting bicycle industry reindustrialisation?

Cycleurope had a significant level of financial debt that worsened after Covid. Due to its disengagement strategy, the shareholder was no longer willing to refinance the company. We felt it was important to find a solution with the creditors because we wanted to keep all the employees as they are an integral part of the project. We then had to sit down with the banks to try to find a common solution. The Grimaldi Group cooperated by stating that it would support the debt reduction operation by giving up its current account in the company. After that, we proposed to the banks (LCL, Crédit Agricole, and CIC) a significant compensation. The BPI agency, which was also among the creditors, also had to agree and be compensated in turn. We invested several million euros in this operation without resorting to bank loans. The operation was carried out using our funds. Regarding France Vélo, we plan to present our project by December.

What will be the role of Jérôme Valentin, the CEO of Cycleurope Industries SAS?

Jérôme Valentin supported the divestment process for nearly six months to find the best solutions for the Grimaldi Group and the employees. We still need his help to ensure we continue the projects that make Cycleurope’s DNA. We believe that success in a takeover involves support from the former manager to save time. Of course, we have our vision and way of working. But we believe strongly in the legacy and the actions taken by Jérôme Valentin. He stepped down from his operational role the day the deal was signed. However, he will still assist us for a few more months.

What about the employees? How do you plan to reorganise the company?

I introduced myself and spoke with all the staff on October 7, the official date we took possession. We found engaged, motivated employees, proud of their brands and their work environment. Several reorganisations have already taken place and are starting to bear fruit. There is no drastic reorganisation needed like is often seen in acquisitions or large restructuring projects. We need to develop our brands and our models and rely on our customers while reassuring them. Our main mission is to boost product development, which had slowed down for Peugeot, but sped up for Gitane. The goal is to find a balance. Then, it is important to establish all the synergies with the Rebirth Group, which we now call the Rebirth Platform.

What are your investment plans for the factory and the Gitane and Peugeot Cycles brands?

We are currently renting the factory building, which covers an area of 36,000 m2, from the Aube Department and the Community of Communes. It is an old building for which renovation solutions were considered but later abandoned in favor of a new project that will start in the first quarter of 2025 and be completed by December 2026. We are planning about €12 million of investments to modernise the factory. Afterwards, efforts will focus on Gitane products. However, major investments in development will be made for Peugeot Cycles, which needs to reinvent itself and become international. The Vélo & Oxygen concept will not be forgotten. During the Pro-Days in Toulouse last July, we started imagining a new store concept. Priority will be given to the current affiliates who have trusted us so far, and it is important that our first actions are reserved for them.

How does this factory fit into your future vision of mobility?

In the short term, and before the new building, this factory will help create synergies with our Saint-Lô unit, especially in painting, and welcome our new OEM clients. Then, from January 2027, the Romilly factory will be integrated into the component manufacturing platform, producing frames and parts. We also envision integrating future products, such as Matra scooters and Solex mopeds within this mobility hub. We are only in the early days of this new entity, and we must explore everything before finalising a definitive strategy. We also plan to develop this site for our long-standing clients, such as La Poste or other last-mile mobility players.