Lectric eBikes

Cherry Tree Advises Lectric eBikes on an Investment by Bertram Capital

INDUSTRY:
Consumer

DESCRIPTION:
Rapidly Growing Provider of eBikes

LOCATION:
Phoenix, Arizona

TRANSACTION TYPE:
Recapitalization and Growth Capital

Overview:

In December of 2020, Lectric eBikes, one of the largest and fastest growing designers and direct-to-consumer retailers of electric and pedal-assist bicycles, announced that it had received an investment from Bertram Capital, a growth equity investor specializing in backing high growth consumer products companies. The rationale for the investment is to capitalize on the company’s rapid growth and strong demand, and to invest in inventory, marketing, and Lectric’s ecommerce platform.

Cherry Tree was engaged to help the founders identify the best partner to support the company’s rapid growth and consummate a recapitalization with a growth capital investment. The Cherry Tree team advised the founders in a process that included effectively communicating this compelling investment opportunity to potential investors, engaging with a wide range of qualified parties, soliciting term sheets and negotiating attractive terms, and supporting the company in working through the diligence process and finalizing the definitive agreements.

Levi Conlow and Robby Deziel, Lectric co-founders, stated, “With this investment from Bertram Capital, we are thrilled to have a partner who is a leader in the ecommerce sector and brings the resources to help us achieve our vision of building great bikes for millions of people at accessible prices, while maintaining industry leading customer service.”

Lectric was advised by Cherry Tree & Associates, LLC, due to its specialization in serving high growth consumer products companies. Taft, Stettinius, and Hollister LLP served as Lectric’s legal counsel.

About Lectric eBikes

Lectric eBikes: Lectric is the among the largest and fastest growing e-bike brands in the United States. Lectric’s bikes feature functional designs, brand name components, and a growing complement of accessories. The XP, Lectric’s flagship model, has been widely praised as the best e-bike under $1,000. The Company sells all of its bike models directly through its website, and customer questions and feedback are addressed by a knowledgeable US-based customer service team. Lectric was founded in 2018 by Robby Deziel and Levi Conlow, and is based in Phoenix, Arizona. For more information, visit the Company’s website at www.lectricebikes.com.

About Bertram Capital

Bertram Capital: Bertram is a private equity firm targeting investments in lower middle market companies. Since its inception in 2006, the firm has raised over $1.7B of capital commitments. In addition to supplying strategic growth capital, Bertram Capital leverages proprietary processes and services, Bertram High-5 and Bertram Labs, to empower its portfolio companies to unlock their full business potential. The Bertram High-5℠ is an operationally-focused value creation strategy, which includes management augmentation, operational initiative implementation, complementary business acquisition, sales and marketing improvements, and leveraging technology and IP. The cornerstone of this strategy is Bertram Labs, its in-house technology team, which drives growth and value through digital marketing, e-commerce, big data and analytics, application development, and internal and external platform optimization. Visit www.bcap.com for more information.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.