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Travel services giant Flight Centre Travel Group (ASX: FLT) is offloading its 47 per cent stake in Pedal Group, Australia's largest bicycle company and operator of the 99 Bikes retail chain, to a consortium associated with managing director Graham Turner and his family for $61.7 million.
The move will end an 18-year investment in Pedal Group which began as a joint venture between the Turner family and the Brisbane-based travel group.
The binding agreement, announced today, will see the Turner Collective acquire Flight Centre's minority interest in the business that it has backed since 2008.
Flight Centre expects to recognise a $15 million accounting gain on completion, with no cash tax impact as the capital gain will be fully offset by existing tax losses.
The deal forms part of Flight Centre's ongoing portfolio simplification strategy as it sharpens its focus on core travel operations. It follows the company's sale of other non-core interests in recent years as it streamlines its balance sheet.
In October, Flight Centre sold its Asia-based hotel management business to South Korea’s Sono International Co for an undisclosed sum.
Pedal Group, which was founded by Graham Turner’s son Matt, operates more than 70 retail stores across Australia, New Zealand and the United Kingdom through its 99 Bikes chain and wholesaler Advance Traders.
Flight Centre is the joint venture's largest shareholder at 47 per cent with the Turner family holding about 35 per cent and Pedal Group employees owning the remaining stake in the business.
Flight Centre non-executive chairman Gary Smith says the transaction represents disciplined capital allocation.
“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,” says Smith.
“We believe the Turner Collective is well placed to support Pedal’s next phase of growth.
“This divestment follows the sale of our Cross Hotels and Resorts business and reflects FLT’s disciplined approach to capital allocation and portfolio simplification.
“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.”
The proposed transaction comes six months after Flight Centre announced that it and the Turner family had formally engaged advisors to review future ownership options for Pedal Group.
At the time, Flight Centre said that while it planned to retain an investment in the business and to work closely with potential partners it would consider proposals that related to its Pedal Group stake if it believed those proposals were in the best interest of shareholders.
The buyout proposal was initiated by Matt Turner, who approached Flight Centre with the acquisition plan. BDO subsequently prepared an Independent Expert's Report on the transaction, concluding the terms are fair and reasonable to non-associated shareholders.
The transaction is subject to approval by Flight Centre shareholders at an extraordinary general meeting scheduled for May 14, 2026, with completion anticipated on or after May 15, 2026.
An independent board committee comprising non-executive directors Dean Salter and Anand Aithal oversaw the process, with Graham Turner and the broader Turner family excluded from deliberations given their association with the buying consortium.
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