Paragon and its co-investors have sold their stake in POLO Motorrad to funds advised by Equistone Partners Europe, marking a strategic divestment after successfully revitalizing the company post-insolvency.

Target Information

POLO Motorrad und Sportswear GmbH stands as a prominent European multi-channel retailer specializing in motorcycle apparel and accessories. Since acquiring the company out of bankruptcy in April 2012, significant restructuring efforts have been executed, allowing the business to return to a successful growth trajectory. Currently, POLO operates 82 stores in Germany and seven in Switzerland, supported by approximately 800 employees. Additionally, the company sells its products through its own online shop and B2B channels.

Over the past three years, POLO Motorrad has undergone extensive reorganization. Under the leadership of Paragon, along with co-investors Tempus Capital and SM Investment Ltd., and guided by the management team led by CEO Dr. Michael Kern, critical development steps post-bankruptcy included the establishment of a new management team, enhanced corporate governance, rebranding efforts, optimization of product offerings, improved merchandise availability, and procedural professionalization across all business functions, including procurement, sales, marketing, and finance. As a result, the company achieved robust sales growth, with revenue reaching approximately €114 million in the last fiscal year.

Industry Overview in Germany

The motorcycle apparel and accessories market in Germany is increasingly competitive, driven by a growing interest in motorcycling as both a sport and a leisure activity. With more consumers taking to the roads, there’s a n