The family of Flight Centre’s founder and CEO, Graham Turner, has announced a buyout of cycling retailer 99 Bikes in a vote of confidence for the sector.

The ASX-listed Flight Centre announced the divestment of its remaining 47 per cent stake in Pedal Group – 99 Bikes’ parent company – to the Turner Collective for a fee of $61.7 million.

This collective refers to a consortium of Turner family members, led by Graham Turner, who will now hold around a 76 per cent stake in Pedal Group, which also owns wholesaler Advance Traders Australia.

Graham Turner’s son, Matt, founded 99 Bikes in 2007; it now boasts more than 75 stores across Australia, New Zealand, and the UK.

“Pedal is a strong business with a loyal and engaged customer base, and we are proud of what has been built through the joint venture,” Flight Centre’s non-executive chairman, Gary Smith, said. 

“We believe the Turner Collective is well placed to support Pedal’s next phase of growth.”

Flight Centre entered the cycling industry in 2008, when it secured distribution rights for Merida and Indi bike brands across Australia; it also created a joint venture with Turner’s 99 bikes that same year.

“This divestment follows the sale of our Cross Hotels and Resorts business and reflects (Flight Centre’s) disciplined approach to capital allocation and portfolio simplification,” Smith added.

“The transaction crystallises a strong return on our investment and enhances our capacity to invest in our core global travel businesses and future growth initiatives.”