Darth Lefty 

Pon Holdings, which owns Cervelo and Santa Cruz, and which forum rats may rememeber from last month's threads about the LBS chain Mike's Bikes, has bought all the bike brands off Dorel. This includes quite a few bike shop and Walmart brands including Cannondale, GT, Schwinn, Mongoose.

https://www.nasdaq.com/articles/owne...ion-2021-10-11

h/t MTB_Marc on MTBR https://www.mtbr.com/threads/cannond...zelle.1195247/

mstateglfr 

Pon, Accell, Dorel, and Regent- all these seem to own or have owned many of the same brands thru the years.

Schwinn was owned by Pacific Cycle, which was owned by Dorel. So is Pacific Cycle staying with Dorel and only its IBD brands were sold to PON? I mean, Mongoose is a Big Box brand now and so is Schwinn. Those are very much not IBD brands, so has Dorel sold ALL its bike brands under Pacific Cycle?
Kinda curious to see what direction PON goes with this. Do they kill some of the brands and keep the reputable/valuable brands? Do they push to up the quality level of Mongoose and Schwinn to get them back into IDBs? Do they absorb all the Big Box brands and keep them active, which means PON is now in the Big Box volume bike business? They do own Derby already, which is a pretty high volume brand.

Darth Lefty 

It's all of Dorel Sports and their vision is more e-bikes.

pdf link https://pon.com/pon-data/uploads/202...-company-2.pdf

Germany_chris

I think is smart to go long on ebikes

63rickert

Surprised this got so little response. I’d have missed this for months if you hadn’t posted. Thank you.

repechage

The all inclusive brand manager meeting to come will be a doozy.

bOsscO

lol

TiHabanero

From what I read only the bike brands mentioned where sold off. Dorel markets lots of other stuff and will keep those products. Wonder what these guys want outside of market presence in the US.

Maelochs

Total domination, maximum profit, market control .... If all the bikes you can buy are from the same corporate overlord, said overlord gets more wealthy. I don't see the new management messing with the individual manufacturers much, besides some homogenization to take advantage of economies of scale. Mostly, the idea (IMO) is to make sure that if you a buy a bike, they make some profit.

blacknbluebikes 

"Get big, get niche, or get out"

SkinGriz

E-bikes not for me, but definitely a market there.

SkinGriz

Thats everything. Compete on price or market differentiation.

repechage

I live in an area with topography. Climbing 500' to go shopping is just not going to happen.
Right now, most of the ebikes are piloted by high school or intermediate school age.
Beats having Mom drive them, but fitness?

With a bit of education, there I think would be a wide market where the bike puts out 150-200w and the hills are "leveled"
one still has to pedal, but equal to being on the flatland.
Those do essentially exist, but the lure of more power...

Darth Lefty 

Big companies can also pretend to be small with small brands. That's got to be why there's a hundred different brands of MTB's with slightly different rear suspensions and nearly identical websites and ad copy

Atlas Shrugged

Where are all the guys crapping on Specialized for not continuing as a dealer after Pons bought Mikes bike shop in California.

Darth Lefty 

Been done, successfully lampshaded in first post

Leinster

Isn't that enough?

The Schwinn/Mongoose/GT stuff basically gets them into every big box store in the US in one go. Even Cannondale gets them into REI etc. It opens up a massive market of people who might never actually walk into a bike shop or, especially, go online to buy the latest carbon whatever.

Garfield Cat

I did a search and this thread seemed appropriate (enough).

I did some research on the Dorel Industry sale announced in January 2022 to Pon Holdings. This was the bicycle division sale. I think we realize that Pon Holdings is the owner of Cervelo and has been way before the Dorel Industry sale of its bike brands.

I checked out Yahoo, Finance to see what Dorel Industries was doing around that time period. Dorel is a Canadian public company. It's price for the common-B shares was around $25 per share. That was when Dorel announced a "special cash dividend" (because of the bicycle division sale) of $12 per share.

The price at that time, January 2022 was $25 per share. I looked back to see what was the low price a few years back and it closed at $1.50 back in March 30, 2020.

Then the month after the announcement in January 2022, that is, February 2, 2022 the price went down and closed at $15.217 per share.

Today (September 20, 2023) Dorel is selling around $5 per share.

I wonder what else is Pon Holdings going to buy? Specialized? Trek?

Observation: Jumbo Visma team is a Dutch team, riding Cervelo owned by Pon Holdings.

Black wallnut 

So? Thanks for the market report. Do you dig up old tires too just to look at the defects?
Dorel divested from the bike business, passed on the profit from that to shareholders and now years later their stock price is down. So.

How is any of this a reason to drag up a two year old thread?

Garfield Cat

The original post may have been a two year old thread; however, the transaction was January 2022. The Doral/Pon transaction has significance as it refers to bike brands like Cannondale, etc. even now.

The stock price, cash dividend: This highlights some of the "back story" of how the business works, actually any business. Admittedly Pon Holdings is not a public company, yet a very formidable business model.

Black wallnut 

January '22 is still 21 months ago, a bunch closer to two years than a current affair. Randy Travis had a big hit in the 80's that seems appropriate here. Digging Up Bones. What is the significance today of that transaction? Is Cannondale still selling bikes? How does it matter who the parent corporation is when it comes to consumer goods? Did the production move to a different plant, different country even? That may or may not matter.

Maelochs

Don't feed the zombies ... brains are already in short supply around here ....

Garfield Cat

Actually, this reply is not just for you but for anyone who wishes to follow this thread, for better or for worse.

One significance is to get an understanding of how the "business of bikes" works.

Part of your id shows "Schwinn and Specialized"

Take a look at the Pon site: www.pon.bike

The scroll to Cannondale, distributors. Also, try Cervelo, distributors.

Maelochs

What is the benefit to bike riders of "an understanding of how the 'business of bikes' works"?

In fact it is not even "the bike business" so much as it is "big business." There is nothing about the manufacturer of actual bikes, i.e. choosing designs, determining parts purchases, planning for future bikes, being done at that level. Just as no single bike was significantly changed when Dorel bought all the stuff it sold to Pons ....

"The business of bikes" is done further down the corporate chain ... what you are discussing is "the business of acquisitions and mergers."

Garfield Cat

Thanks for continuing this thread.