ATK buys Cannondale inventory
September 29, 2003
Filed under Features
Former Cannondale dealers seeking parts for the defunct powersports manufacturer’s off-road bikes and ATVs now can contact ATK Motorcycles of Centerville, Utah.
ATK founder Frank White told Powersports Business he purchased nearly 35 truck-loads of hard parts, including engines, frames, oil filters, clutch plates “and all the little specialty widgets” on Aug. 20 from National Retail Liquidators (NRL). He says the inventory is worth about $13 million.
“There’s a lot of really good stuff there, and so our first priority is to restock the existing Cannondale dealer with product,” White said. “We knew what we were looking for. We looked through all their stuff, made them an offer and came to a deal.
“I didn’t get items like handlebars and tires and other things I can purchase straight from suppliers. Someone else came in and bought things like headlights, tires and suspensions, but we buy OEM tires all day anyway and have great relationships with suspension companies like Öhlins and Paoli, so why should I buy old stuff when I can buy new stuff down the road.”
Although he realizes he will be short on some items, White says he is in the process of communicating with original vendors to obtain leftover Cannondale shipments and have more parts made.
New Cannondale-based Products?
White says his plan eventually calls for ATK to combine its technology with Cannondale technology to create some new products, and says ATK engineers already are working with former Cannondale R&D engineers.
“The people they had there were really very competent, and the Cannondale bikes were about 95% there, so what we need to do is take them to about 99% there,” he said.
An expansion into ATV production also is planned, White said. “(ATV) is a huge market, and Cannondale was on the cutting edge of technology and design,” he said. “We want to incorporate that kind of forward-thinking into future ATK models.”
White says the parts he purchased won’t only be offered to dealers, however. He also plans to supply consumers — albeit with two different pricing structures. “So, if a retail customer wants a part from us, fine. If a dealer wants it, fine. Different pricing,” he said.
So, will former Cannondale dealers now automatically qualify to be ATK dealers?
“We’re actually coming up with an interim dealer agreement that will be good from now until the end of the year,” White told Powersports Business in early September.
“So, our goal right now is to see how many Cannondale dealers are interested, how many ATK dealers are interested, what markets they’re each in, and who might go and who might stay.”