Cannondale purchased

[Bob Dole]

http://online.wsj.com/article/BT-CO-20080204-705902.html?mod=moj_industries
[WSJ is not a free site; some excerpts from the article below]

"Montreal's Dorel Industries Ltd. (DIIB) has agreed to acquire
Cannondale Bicycle Corp. for $190-$200 million, subject to
Cannondale's earnings for the year ending June 30.

"The purchase also includes Sugoi Performance Apparel.

"Dorel said that, following the acquisition, its Recreational/Leisure
segment will be split into two distinct operating divisions. A new
Dorel Independent Bicycle Dealers (IBD) division, the Cannondale
Sports Group, is being created and will focus exclusively on this
category with premium-oriented brands. Pacific Cycle, purchased by
Dorel in 2004, will now be a stand-alone division focused on the mass
merchant channel."

[Ryan Cousineau]

In article
<9f5449e3-896b-4385-8b51-24a871adb87d@i29g2000prf.googlegroups.com>,
Bob Dole <tsdev@mailcity.com> wrote:

> http://online.wsj.com/article/BT-CO-20080204-705902.html?mod=moj_industries
> [WSJ is not a free site; some excerpts from the article below]
>
> "Montreal's Dorel Industries Ltd. (DIIB) has agreed to acquire
> Cannondale Bicycle Corp. for $190-$200 million, subject to
> Cannondale's earnings for the year ending June 30.
>
> "The purchase also includes Sugoi Performance Apparel.
>
> "Dorel said that, following the acquisition, its Recreational/Leisure
> segment will be split into two distinct operating divisions. A new
> Dorel Independent Bicycle Dealers (IBD) division, the Cannondale
> Sports Group, is being created and will focus exclusively on this
> category with premium-oriented brands. Pacific Cycle, purchased by
> Dorel in 2004, will now be a stand-alone division focused on the mass
> merchant channel."

Interresting. Those darned Canadians, swooping in and buying all the
good stuff.

Ironically, this represents a repatriation for Sugoi, who are based out
of Vancouver (the bigger, better one).

My guess is that Cannondale will largely be left to continue building
high-end bikes as it sees fit: $200M is too much to pay for a brand
you're planning to gut and use for marketing. Also, it sounds like this
will give GT a new niche in the Dorel system, which means it has a more
durable future as a maker of "good" bikes as opposed to department-store
fodder.

--
Ryan Cousineau rcousine@gmail.com http://www.wiredcola.com/
"In other newsgroups, they killfile trolls."
"In rec.bicycles.racing, we coach them."

[Robert Perkins]

Ryan Cousineau wrote:

> My guess is that Cannondale will largely be left to continue building
> high-end bikes as it sees fit: $200M is too much to pay for a brand
> you're planning to gut and use for marketing. Also, it sounds like this
> will give GT a new niche in the Dorel system, which means it has a more
> durable future as a maker of "good" bikes as opposed to department-store
> fodder.
>

Pegasus Partners bought them in 2003 for $58m. Not a bad Return on
Investment.

[Ryan Cousineau]

In article <47a7e821$0$22660$4c368faf@roadrunner.com>,
Robert Perkins <robert.perkins@hotpop.com> wrote:

> Ryan Cousineau wrote:
>
> > My guess is that Cannondale will largely be left to continue building
> > high-end bikes as it sees fit: $200M is too much to pay for a brand
> > you're planning to gut and use for marketing. Also, it sounds like this
> > will give GT a new niche in the Dorel system, which means it has a more
> > durable future as a maker of "good" bikes as opposed to department-store
> > fodder.
> >
>
> Pegasus Partners bought them in 2003 for $58m. Not a bad Return on
> Investment.

No indeedy. The acknowledged state of the company when Pegasus bought
them was of a still-profitable bike division that was being pulled under
by the horrendous failure of the new powersports division.

Pegasus basically bought the corporate assets, spun off the
motorcycle/ATV assets to whomever, and ran the bike company.

Still, even I'm quite impressed by a better-than-threefold appreciation
in five years.

--
Ryan Cousineau rcousine@gmail.com http://www.wiredcola.com/
"In other newsgroups, they killfile trolls."
"In rec.bicycles.racing, we coach them."