More "latest on Cannondale'

Discussion in 'Cycling Equipment' started by Doug, May 8, 2003.

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  1. Doug

    Doug Guest

    Sounds promising.

    http://www.bike-zone.com/biznews.php

    CANNONDALE COMPLETES SALE The Cannondale company has completed the sales of the assets of its
    bicycle and motorsports divisions to affiliates of Pegasus Partners II, L.P. (Pegasus). Cannondale
    filed for Chapter 11 protection in late January following mounting losses incurred by its
    motorsports division.

    In future, the bicycle business will be incorporated as the Cannondale Bicycle Corporation. Dan
    Alloway and Scott Montgomery will continue as senior executives of the Company as Vice President of
    Sales and Vice President of Marketing, respectively. In addition, the Company is recruiting a Chief
    Financial Officer and a Chief Operating Officer to bring additional stability to the business.
    Company founder Joe Montgomery will be a consultant to the Company.

    In an official statement, VP of Marketing Scott Montgomery said "We're extremely happy to have
    concluded the Chapter 11 process so quickly. We were in Chapter 11 for less than 100 days, but we've
    been a successful part of the bike industry for 32 years. We are back to our roots and it feels good
    to bring renewed focus to the bicycle business."

    The company added that its products are still selling well, and it has a "very strong line planned
    for 2004."

    As part of the acquisition, Pegasus plans to sell Cannondale's motorsports assets, but doesn't plan
    any other major changes. "Cannondale's difficulties were not related to its bicycle business," said
    Pegasus partner David Uri. "The problems came from its motorsports effort. The bicycle division has
    remained profitable, which is a stunning accomplishment given the burden and distraction that
    motorsports imposed."

    "We have no desire to disrupt a winning formula," continued Uri. "As we've said before, our job now
    is to support and supplement the existing Cannondale team to allow them to concentrate on what they
    do best - designing, manufacturing and marketing lightweight, high-performance bicycles for the
    specialty retail market."
     
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