slagjumper

02/04/2008 8:31 AM MST
Dorel Buys Cannondale

MONTREAL, Quebec (BRAIN)—Dorel Industries has just announced the acquisition of the Cannondale Bicycle Corporation.

https://www.bicycleretailer.com/news/newsDetail/926.html

"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."

"Dorel purchased Pacific Cycle (Schwinn, Mongoose and GT Bicycle brands) in 2004."


ROI, EBIDA, manufacturing, etc.

https://www.dorel.com/press/2008/DII_...08_ENG_VF2.pdf

Conference Call
Dorel Industries Inc. held a conference call to discuss the Cannondale acquisition at 10:30 A.M. Eastern Time today.

You can access a tape recording of the meeting by calling 1-877-289-8525 and entering the passcode 21261172# on your phone. This tape recording will be available on Monday, February 4, 2008 as of 12:30 P.M. until 11:59 P.M. on Monday, February 11, 2008.

wahoonc

Wonder how long before the "w.h.o.r.e" the brand name to Target or Walmart

Aaron

HauntedMyst

I've been a Cannondale fan since I was a kid. Its a shame to see Pacific pick them up. I wonder how long it will be before the folks in Bedford, PA are given pink slips.

Tom Stormcrowe

My thoughts exactly......

There goes a good brand down the tubes

Abneycat

Be on the lookout for $250 bikes with those infamous "Headshok" suspension forks. Or better yet, I wonder how safe and/or reliable you can make a lefty when its knocked down to a Wal-mart price?

jgedwa

Yippie! I can finally afford to buy a Beast of the East. And conveniently, at Walmart. Plus, since one size fits all, I can be sure it will fit me. I have to remember to pick up some potting soil and cotton swabs, while I am there. jim

ajay677

Dorel is saying that they want a high end cycle line to round out their current stable of offerings. They plan to continue to source Cannondale frames domestically and components overseas. We'll wait and see how long that continues.

Sci-Fi

Doubt any Cannondale's will be sold at any of the x-marts. Sounds more like Dorel wants to setup a few showcase stores in major markets along the lines of Trek and keep the Cannondale brand high end, which means more profit at lower sales volumes. Would expect the entry and mid-level bike frames to be out-sourced, like Trek does, with the high end frames still handmade in the USA.

dobber

You might look like less of an idiot if you read the article. They clearly state their intent to maintain Cannondales position as a high-end brandname.

jgedwa

I do not think it makes one an idiot if they have doubts that any given corporation will live up to its promises made in a press release.

Care to bet that sooner rather than later people will be talking about the "real" C-dales of yore?

jim

Abneycat

Even if they kept a "real Cannondale" line around, it wouldn't be surprising to see them integrate some of their more interesting features into their junko brand lines, much like how these current dept. store bikes imitate the "elite styling" like carbon fibre ("carbon wrap" over metal underneath: why do they do this again?) and full suspension. You know, like the $200 full suspension bikes people love so much: The sidewalk crawlers

As I said, be on the lookout for cheap mountain bikes with headshok systems or lefties. You know, the ones with the 3 month service life and the same off road ability as a plastic tricycle. Only cooler. Like that superfast carbon fibre wrap over the metal frame sort of cool.

Now, hope that i'm wrong. It would be pretty cool to see Cannondale remain as it is, because its pretty neat stuff. But, I wouldn't put it past these guys.

Nermal

Sounds like a company calling it's employees together to announce that there isn't going to be a layoff, in spite of rumors. When they do, it's time to start polishing the old resume.

wahoonc

I did read the article...want to do some research about the purchase of Mongoose, GT and Schwinn? I have little to no faith in a company like Pacific living up to their word. Explain why they are selling Schwinn's at the LBS, Performance and WM? All they are doing is getting the LBS PO'ed at them. I know of at least 3 that stopped carrying the Schwinn and GT lines for just that reason. Edit: and that was after they assured them they would never do that.

Aaron

genec

Yeah and Wallmart used to use the slogan, "Buy American... "

flyntsharpstone

i don't know about y'all but worries me most is this statement by dorel exec's "We are committed to pursuing this sector, and this important transaction will position us globally in a most material way. Dorel recognizes the importance and potential of the Independent Bicycle Dealer channel and is purchasing Cannondale as the first step to become the world’s number one IBD player. Cannondale will be the crown jewel of this new Dorel division, which will seek additional such growth opportunities.” is he saying that at some point in the future i'll be able to buy my fishers from wal-mart?

jaxgtr

No, they are keeping the Cannondale's in the LBS and the other that they build separate. Been pretty clearly discussed in Road Forum.

LarDasse74

You are describing exactly what happened to Mongoose... they sort of tried for a couple seasons to run it properly, made a few pretty nice bikes IIRC, but then one day I saw a Mongoose in Wal Mart. I suppose Cannondale is a more respected bike than Mongoose ever was (some people disagree with this), so this could be worse...

I suspect it will get worse, tho.

rkpol7

From what I heard about walmat is that they try to bully their way into getting what they want from suppliers to keep prices low. (Can anyone verify this?). If that's true, I wouldn't be surprised if Walmart tries to force Dorel into providing Cannondale branded bikes into their online only selection.

wahoonc

I can't verify it...but I can provide plenty of anecdotal evidence...

Aaron