Funds News

Cycle Gear nears deal to buy RevZilla -source

Feb 4 (Reuters) - U.S. motorcycle store chain Cycle Gear Inc. is close to acquiring RevZilla, a website that sells motorcycle apparel, in deal that would create a company valued at between $400 million and $500 million, including debt, a person familiar with the matter said.

A deal is expected to be announced in the coming days, according to the person, who asked not to be identified because the deal is not yet finalized and could still fall apart.

RevZilla and J.W. Childs, the private equity firm that owns Cycle Gear, could not immediately be reached for comment.

The deal will help Benicia, California-based Cycle Gear, which has more than 100 stores in 34 states, expand its Internet footprint. Philadelphia-based RevZilla, which has $100 million in sales, is owned by three young motorcycle enthusiasts who founded the company as twentysomethings in 2007.

RevZilla YouTube’s page, which posts product reviews and videos about motorcycles, has more than 60 million views.

J.W. Childs acquired Cycle Gear in January 2015 from private equity firm Harvest Partners. (Reporting by Lauren Hirsch in New York; Editing by Alistair Bell)