Dorel Industries Ltd., the owner of Schwinn bike marketer Pacific Cycle Inc. of Madison, WI, said Monday that it has purchased Cannondale Bicycle Corp. for up to $200 million.
With the acquisition, Montreal-based Dorel establishes two distinct bicycle divisions, with Pacific Cycle focusing on the mass merchant channel. Cannondale will focus on the independent bicycle dealer channel, emphasizing high-end bikes.
Cannondale is a Bethel, CN-based producer of high end handcrafted bicycles. Dorel also acquired Sugoi Performance Apparel, a provider of apparel products used by runners, cyclists, triathletes and fitness enthusiasts. Its 2007 sales were about $200 million.
The total value of the all-cash transaction will be $190 million to $200 million, subject to Cannondale's earnings results for the year ending June 30, 2008. Cannondale and Sugoi are being purchased from an affiliate of Pegasus Capital Advisors, which acquired the company in 2003.
As part of the moves, Dorel said Alice Tillett, who has been executive vice president, mass and sporting goods channel at Pacific Cycle, has been named president of the Madison business.
Pacific Cycle is the U.S. marketer of Schwinn, Mongoose and GT brand bicycles.
>>>>CitiBank asked China for a loan, Easton is moving to Taiwan (uh oh Intense--damn!) and Britney Spears is now front page news what difference does this news make? :( Posted by Mongoose a 67 year old riding a Bullit from Hwy 2 on 02/07/08