Suitors eye Cannondale
March 10, 2003
Filed under Uncategorized
Potential bidders for Cannondale’s motorsports business and bicycle business are lining up to make offers on each of the segments following the company’s Chapter 11 bankruptcy filing Jan. 30, 2003.
Originally, bids were due March 11 and the auction was slated to take place March 13 in Bethel, Conn. But the deadline may be pushed back several weeks.
Pegasus Partners, a venture capital firm that was owed approximately $25 million by Cannondale, has made a so-called stalking horse bid which sets the minimum bid.
A minimum bid of $57.2 million was set for the bicycle assets and a minimum bid of $2.8 million was set for the powersports operation.
Accell Group, N.V., a Dutch bicycle maker, said it is considering making an offer for the bicycle portion of Cannondale. “If we get to the point that we will acquire Cannondale,” said Reni Takens, Accell chairman, “then Accell will become one of the most important suppliers of bicycles in the world.”
Takens said Cannondale has a strong brand and a solid market position, making it an excellent candidate for an Accell acquisition. “It’s an internationally known brand with an excellent reputation,” he said.
A California investor group calling itself Global Manufacturing Group also told Powersports Business that it is considering making a bid for the motorsports segment. The group includes a powersport company, Rad2Go, which used the Cannondale space at the Dealer Expo.