Cannondale is gone .
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cdngrimpeur
Old School Hero
Sorry to say, Cannondale fans, but it reeks of the same sort of scenario as when Rocky Mountain was bought out by Procycle in the 90s. Curiously, both of the acquisitions seem to have been Canadian/Quebecois companies that were maybe looking to get their whole line a bit of an upgrade by adding some chichi bikes to the entry level bicycles already in their stable. Corporatisation really takes the fun out of it all, with their bottom lines and all that. I'm sure they'll realise some 'synergies' from this acquisition - pah, I hate that word.
Sadly, I feel that Rocky's products and selection went into the tank after they were bought out. Hopefully Cannondales don't suffer a similar fate.
Sadly, I feel that Rocky's products and selection went into the tank after they were bought out. Hopefully Cannondales don't suffer a similar fate.
My ETSX just kicks ass, espescially here in the UK.
The Slayer is a weapon that can kick the shit from Fernie to French Alps and back again.
So the Rocky Mts kick butt and poop........I guess. Well that just sound...odd.
Can I change that where is the edit button??
The Slayer is a weapon that can kick the shit from Fernie to French Alps and back again.
So the Rocky Mts kick butt and poop........I guess. Well that just sound...odd.
Can I change that where is the edit button??
SeeingisBelievingGTMuseum
Old School Grand Master
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Don't over react
Guys don't over react. First get the facts straight.
1) Cannondale was bought by Dorel Industries of Canada which bought Pacific a while back.
2) Pacific is also a division of Dorel Industries
3) Most importantly Pacific DID NOT BUY Cannondale
4) Cannondale, GT and Sugoi are being split away from their former companies or divisions into a new Dorel entity called "Cannondale Sports Group" which will solely focus on the independent bicycle dealers.
5) I asked someone I know that still works for GT and was told that Cannondale and GT will continue to run as separate companies under this new entity with their own product and sales staffs.
Now take a deep breath and relax. The original post on this thread is how vicious internet rumors get started and that's one of the things that drives me nuts about the www. People read crap like the first post on the web and assume it's the gospel. Well it ain't.
Cheers!
Guys don't over react. First get the facts straight.
1) Cannondale was bought by Dorel Industries of Canada which bought Pacific a while back.
2) Pacific is also a division of Dorel Industries
3) Most importantly Pacific DID NOT BUY Cannondale
4) Cannondale, GT and Sugoi are being split away from their former companies or divisions into a new Dorel entity called "Cannondale Sports Group" which will solely focus on the independent bicycle dealers.
5) I asked someone I know that still works for GT and was told that Cannondale and GT will continue to run as separate companies under this new entity with their own product and sales staffs.
Now take a deep breath and relax. The original post on this thread is how vicious internet rumors get started and that's one of the things that drives me nuts about the www. People read crap like the first post on the web and assume it's the gospel. Well it ain't.
Cheers!
Speaking as a very happy owner of a 2002 Element Team Scandium, I have to say I completely disagree with you. It's a superb-handling frame, it weighs pretty well as much as a hardtail, it's made out of the best available materials and I like the little sticker signed by the (Canadian) guy who built it. I don't see any evidence of Rocky Mountain products having suffered from that change of ownership.cdngrimpeur":3gawvf79 said:
Dhphat
Senior Retro Guru
Long read but very interesting from one of the internal managers at Cannondale.
Congratulations to Pegasus Partners. Pegasus has just sold Cannondale to Pacific Cycle for $190-200 million (the final price will depend on this year’s EBITDA). Following the purchase of Cannondale out of bankruptcy for roughly $58 million in 2003, Pegasus rebuilt Cannondale from its ashes into a $200 million/annual company.
While it should be noted that prior to the Cannondale bankruptcy Pegasus was C’dale’s largest secured creditor, making its complete investment greater than the $58 million purchase price, it nearly tripled its investment in four years. Take that Wall Street!
Even so, it should be noted that today’s economic climate did not permit Pegasus to realize a multiplier on its annual revenue numbers. Not too long ago bike companies were going for three to five times earnings.
The press release announcing the sale named Dorel as the purchaser, as do all the stories in the media, but Dorel is Pacific Cycle’s parent company. Plainly put, Pacific bought Cannondale. Saying Dorel bought Cannondale is like saying the American people (rather than Ford) bought Volvo. Ford is a publicly owned company and its directors authorized the purchase of Volvo. Ford is the corporation we identify as the owner of Volvo.
So what’s the big deal, you ask? Pacific Cycle is a colossus of a bike company. Their lines include Schwinn, GT, Mongoose, Pacific, InSTEP, Roadmaster, Flexible Flyer, Powerlite, Murray and Dyno. It’s largest accounts aren’t respected IBDs but big-box chains: Wal-Mart, Target, Toys “Râ€
Congratulations to Pegasus Partners. Pegasus has just sold Cannondale to Pacific Cycle for $190-200 million (the final price will depend on this year’s EBITDA). Following the purchase of Cannondale out of bankruptcy for roughly $58 million in 2003, Pegasus rebuilt Cannondale from its ashes into a $200 million/annual company.
While it should be noted that prior to the Cannondale bankruptcy Pegasus was C’dale’s largest secured creditor, making its complete investment greater than the $58 million purchase price, it nearly tripled its investment in four years. Take that Wall Street!
Even so, it should be noted that today’s economic climate did not permit Pegasus to realize a multiplier on its annual revenue numbers. Not too long ago bike companies were going for three to five times earnings.
The press release announcing the sale named Dorel as the purchaser, as do all the stories in the media, but Dorel is Pacific Cycle’s parent company. Plainly put, Pacific bought Cannondale. Saying Dorel bought Cannondale is like saying the American people (rather than Ford) bought Volvo. Ford is a publicly owned company and its directors authorized the purchase of Volvo. Ford is the corporation we identify as the owner of Volvo.
So what’s the big deal, you ask? Pacific Cycle is a colossus of a bike company. Their lines include Schwinn, GT, Mongoose, Pacific, InSTEP, Roadmaster, Flexible Flyer, Powerlite, Murray and Dyno. It’s largest accounts aren’t respected IBDs but big-box chains: Wal-Mart, Target, Toys “Râ€
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maybe my first post wasnt all that crap then . :roll:
I have to say I'm not very impressed with this article. Insiders don't always know all that much about their companies, let alone other companies, and Dorel would have to be both liars and stupid for what he says to have any validity. And as they're a publicly-quoted company, if what they have said about operating Pacific and Cannondale as separate divisions of Dorel - Recreational/Leisure is a lie, then they're blatantly breaking stock exchange laws, which I think is highly unlikely.
Basically Cannondale is a prestige brand selling bikes at premium prices - it would be commercial suicide for Dorel to move it down-market. And why would they? It makes big profits, it isn't in difficulty, Dorel bought it because they wanted it more than Pegasus did, because they wanted a prestige brand within their company. But this guy seems to think they spent $200m dollars on Cannondale in order to ruin it (and throw their $200m down the pan).
Basically Cannondale is a prestige brand selling bikes at premium prices - it would be commercial suicide for Dorel to move it down-market. And why would they? It makes big profits, it isn't in difficulty, Dorel bought it because they wanted it more than Pegasus did, because they wanted a prestige brand within their company. But this guy seems to think they spent $200m dollars on Cannondale in order to ruin it (and throw their $200m down the pan).
I stopped to love cannondale bicycle in the beginning of the 90ies, the year after they create the delta V, and when they built the manufactory in the neederland : not the same spirit, not the same philosophy. :roll:
Cannondale is sold ? it's not my problem. For me, cannondale is dead since a long time ago.
Cannondale is sold ? it's not my problem. For me, cannondale is dead since a long time ago.
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