Shop: Halter's Cycles
So the rumors came true.
I can't imagine that being owned by Dorel is worse than being owned by a private equity group. I think the amazing thing through all of this is that the purchase price for Cannondale will end up being 190-200 million. Didn't Pegasus pick up Cannondale for around 20 million a few years ago? That's a nice return on their investment- somebody at Cannondale has been doing something right over the past 5 years. I'm sure Dorel won't take actions that might tarnish the value of their high-end brand acquisition.
The real question now is what does Dorel do with Mongoose and GT? Do they put them under the management of the Cannondale group and market them to IBD's, or do they cut out the top-end models and leave them as big box brands? Will Dorel create a multi-tiered IBD model with less expensive Asian-made GT's and Mongooses piggybacking into IBD's alongside their higher-end and partly-American-made Cannondales? Or do they rebrand those cheap GT's and Mongooses as "Cannondale?" We'll see how they play it.
One thing's for sure, though- with 200 million in debt financing, Dorel has to be looking to expand and grow the Cannondale business...
man that blows, i was hoping to get a c-dale as my next bike since i wasn't too happy of the quality of my china made trek.