Breaking News: Cannondale bought by Dorel for $200m
Cannondale bought by Dorel for $200m
With the purchase Dorel creates two divisons: Pacific Cycle for the mass and an IBD-only division
Canada’s Dorel Industries has acquired the Cannondale Bicycle Corporation.
Headquartered in Connecticut, Cannondale has facilities in Bedford, Pennsylvania as well as offices in Canada, Switzerland, Holland, Japan, and Australia.
The purchase also includes Sugoi Performance Apparel.
The total value of the all-cash transaction will be $190m to $200m, subject to Cannondale’s earnings results for the year ending June 30th.
The transaction, which will be immediately accretive to Dorel’s earnings, is being financed through debt. Cannondale and Sugoi are being purchased from an affiliate of Pegasus Capital Advisors, which acquired the company in 2003. 2007 sales for Cannondale and Sugoi
were approximately $200m
Dorel’s Recreational/Leisure segment is being split in two. The Cannondale Sports Group will be IBD-only.
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What does it mean for customers? Not a lot I assume? They’re still just gonna pump out class bikes right..?