The Business Growth Fund (BGF) has injected £2.8 million into Rutland Cycling, a family-owned business turning over £10 million a year.

Founded in 1981 by Dave and Ann Archer, the business is now run by their son Paul Archer alongside David Middlemiss. The company now hopes to build out its current number of shops, with four additional sites opening in the next four years, as well as developing its e-commerce platform.

Rutland Cycling is the eighth retail-based investment that the BGF has made, with well-known brands including Better Bathrooms and Trunki amongst them.

Middlemiss, managing director at Rutland, comments, ‘Our vision is to be Britain’s best cycling destination, and our staff have worked incredibly hard over the last year to be recognised as both the UK’s best Independent Bike Retailer [Bike Biz] and Women’s Independent Bike Retailer [Total Women’s Cycling] of the year in recent months.

‘Working with BGF now allows Rutland Cycling to realise the ambition we have to take a unique model, rooted in a passion for cycling and customer service, and inspire more people to own and ride a bike.’

More on previous BGF deals:

• Business Growth Fund backs Duncan & Todd
• Oil and gas investment sees BGF hit quarter century deal mark
• ACS Clothing dressed for expansion

As with many deals that the BGF closes, the firm has opted to introduce new non-executives into the business. Keith Pacey, founder and former CEO of Maplin Electronics, has been brought in as non-executive chairman and will be joined by Keith Fleming who used to be finance and strategy director at B&Q as well as CEO at Woolworths Group. The BGF’s own Tim Whittard, investment director at the firm, is also joining the board.

‘Rutland Cycling is a business with a thirty-year heritage that has developed a strong brand and fantastic relationships with the UK’s best-selling bike companies,’ Whittard explains.

‘With the rising popularity in cycling, has come high levels of competition from online retailers in this space and Rutland’s combined bricks and mortar and e-commerce strategy and its differentiated customer offering has enabled it to hold its own in this competitive market.’

The BGF has now made seven new investments during 2014 in sectors ranging from the business services to manufacturing sectors. Its £2.5 billion fund has now backed 48 companies and the firm has placed 34 non-executive chairman and non-executives into portfolio companies.

See also: Our exclusive Business Growth Fund roundtable:

• Taking on capital for acquisitions
• Marketing and new hires for companies after backing
• Capital expenditure for businesses post-investment
• Building out new products