Cannondale Sold

http://www.reportonbusiness.com/servlet/story/RTGAM.20080204.wdorelbike0204/BNStory/robNews/home

Looks like some changes are in store.

…site is slow to load, so here is the article.

Dorel rolls in with a deal for Cannondale

ROMA LUCIW
Globe and Mail Update
February 4, 2008 at 10:29 AM EST

Dorel Industries Inc. [DII.B-T] is buying American bicycle maker Cannondale Bicycle Corp. and Sugoi Performance Apparel for between $190-million (U.S.) and $200-million, expanding its tracks in the high-end cycling market.
Following the acquisition, Montreal-based Dorel plans to divide its Recreational/Leisure segment into two operating divisions [HTML_REMOVED]#8212; Cannondale Sports Group and Pacific Cycle.

Cannondale, headquartered in Bethel, Connecticut, is renowned in the cycling world as a top-tier bicycle maker. At a time when the U.S. market has become flooded with cheaper, imported products, Cannondale is one of the last remaining companies with a [HTML_REMOVED]#8220;Made in the U.S.A.[HTML_REMOVED]#8221; focus. Its handcrafted bicycles are sold in over 70 countries.

Dorel said the purchase price, which is subject to Cannondale's year-end financial results, will boost its earnings [HTML_REMOVED]#8220;immediately[HTML_REMOVED]#8221; and is being financed through debt. Cannondale and Sugoi had sales of around $200-million last year and are being sold by an affiliate of Pegasus Capital Advisors.

Dorel entered the U.S. bike market in 2001 with made-in-China tricycles and small bicycles under the Safety 1st banner. The company bought Pacific Cycle in 2004, including its Schwinn, Mongoose and GT brands. A year later Dorel started selling Mongoose bikes in China.

Dorel also makes ready-to-assemble furniture.

_ More to come._

holy crap!

no no..think about it. you can rally a dh bike and redecorate your place…all with the same sponsor!

people still ride cannondale?

This just in IKEA has bought Trek

Maybe I just missed it, but I thought it was funny I found this on a business section first.

Maybe I just missed it, but I thought it was funny I found this on a business section first.

Is it because no one cares about Cannondale in Canada?

Dorel primarily makes baby furniture. Crappy, lower quality baby furniture.

Dorel primarily makes baby furniture. Crappy, lower quality baby furniture.

aka Mongoose?

people still ride cannondale?

i ride cannondale
i have a perp its awsome its the best dually i have ever owned in 8 years of riding

aka Mongoose?

Despite the fact that Dorel manufactures baby furniture and carseats primairly for costco - they also have other high end brands that manufactures high end baby products..quinny strollers..etc

Dorel is a brand oriented company, as many of you realize Dorel owns Pacific Cycle which owns GT, Schwinn and Mongoose and each of these bike companies cover a different segment of the market in distribution and target market.

From what I know so far, Cannondale will be seeing positive changes in their distribution, as Dorel's extensive resources will build and grow Cannondale's presence in the IBD's (independent bike dealers).
Matt Mannelly, CEO and President of Cannondale Bicycles will continue to run within that group.

the acquisition of Cannondale will create a new division at Dorel called: "the cannondale sports group". They will be responsible for Cannondale, Sugoi, GT and their focus will be to extend their presence in the IBD's.

Pacific Cycle will continue to focus on the mass-merchant channel.

A press release should be released soon with more details…

they should get into motorcycles.

they should get into motorcycles.

That's money!:clap:

Is it because no one cares about Cannondale in Canada?

People care about them in the U.S.A.? Huh?

I actually still own a 1999 R4000 CAAD3 road bike, but I wouldn't ride/own anything else they make outside of road bikes, and there are better ones out there for less money now.

Despite Andrew's (Scarface) comment, I think this more or less effectively takes Cannondale out of the high-end bicycle marketplace. GT is struggling for its identity, and in no way resembles (or retains the positive reputation of) the GT Bicycles of old when they were in Santa Ana, CA. Likewise with Mongoose. After Lopes and Donovan (who were riding Intense M1s with Mongoose stickers on them) left Mongoose, they (Mongoose) became kinda invisible on the racing scene until Eric Carter came along…..From GT. Ironic? And Lopes going from Mongoose to GT? More irony? Like a Pacific CEO going to Cannondale?

Looking at market history, their main target demographic, and the stigma carried by Pacific, tell me how this is a good thing for Cannondale outside of mass-market (I.e.: bikes under $500 USD) sales?

Say bye-bye to yet another "once great" bike brand…..

Now watch Nishiki come back and create the world's sickest bike tomorrow……NOT!