Cannondale next on Pacifics list???

walter

Fourth Party
Cruising around and came across this

SRAM/Zipp, aside, though, that’s not even the juiciest piece of gossip. Rather, what blew us away was the chatter of Pacific Cycle buying Cannondale. Perhaps you've never even heard of Pacific. They own Schwinn, GT, and Mongoose. Rumor is that they're buying Cannondale, shutting down the US factory and turning it into a warehouse, and shifting the production of America's best big bike manufacturing company to Asia. It gives Pacific a high-end performance offering in their portfolio of generally dumbed-down (albeit highly recognized & profitable) brands. Sounds like a smart strategic move to us, though it's sad to see America's final sizeable maker of bikes go offshore.

it came off the Competative Cyclist Interbike wrap up. Any insight from our Cannondale folks here???
 

anrothar

entirely thrilled
*jumps up and down and cheers! :whoopdedo



warning: potentially offensive comment that my vietnamese roommate found amusing nonetheless:

will it now be crack-n-fair?
 

ArmyOfNone

Well-Known Member
If i can get a race bike for less than 3 grand...yay. But i do like to say my bike is made in the U S of A
 

walter

Fourth Party
I wonder, even if this is remotely true, that this is why so many of the 08 Cannondales are coming with standard forks
 

clutch

New Member
it came off the Competative Cyclist Interbike wrap up. Any insight from our Cannondale folks here???

One the cdale employees over on forum24 at mtbr implied it was a rumor started by specialized.

I wonder, even if this is remotely true, that this is why so many of the 08 Cannondales are coming with standard forks


I was under the impression it had to do with supply issues.

Dan Gerous said:
No, the real reason they don't have Lefty Max anymore is because the Max internals were made by Manitou, Manitou was bought by Hayes and the new management pulled the plug, stopped the agreement so Cannondale had no choice.
 
K

Krusty

Guest
That sux

I really like Cannondale because of its quality, premium comps, and simply made in Pa - east coast - USA! I guess the bottom-line always ruins it for everyone else.
 

jdog

Shop: Halter's Cycles
Shop Keep
Let's just hope that this is only a rumor.

I had heard that they sent c-dale a very low ball offer.

j-
 

NJ-XC-Justin

KY-DH-Freddy
It only makes sense if the buyer has intentions to start offering low-end Cdale bikes. So many folks buy them for the Made in the USA boast that they will lose half of those higher-end owners to other makes if they begin producing the (rest of the) frames oversees.
 

clutch

New Member
It only makes sense if the buyer has intentions to start offering low-end Cdale bikes. So many folks buy them for the Made in the USA boast that they will lose half of those higher-end owners to other makes if they begin producing the (rest of the) frames oversees.

Cdale isn't just making their carbon framed bikes oversees. The '08 model year has aluminum low end hardtails (F7) made in taiwan as well.
 

jbogner

NYCMTB: President
JORBA.ORG
From Pacific's POV, they have to salivate at the thought of all those established dealer accounts, and they'd piggyback their lower-end Mongoose and GT brands onto those dealers, I'm sure. GT and Mongoose don't have the IBD presence that they used to have.

However, the private equity investors who own Cannondale are not going to take a lowball offer. They've only been invested in Cannondale for two years now, and have a couple more years before they'll really be looking to sell. Their goal is to make as much money as they possibly can, and that means getting profit up at C-dale so they can sell it for a premium.

Either way, though, Cannondale WILL be sold in the next few years. The private equity guys don't buy to hold...
 
M

Michael

Guest
Not the first time this rumor was started. Who knows.

Cannondale Sold Off
by Vernon Felton
March 21, 2003

Yesterday, Cannondale Bicycle Company went up for auction and was purchased by an affiliate of Pegasus Partners II, L.P. (Pegasus, as you might recall, is Cannondale’s largest, secured creditor and the company that put up the cash in late January, acting as the “stalking horse” bidder in this sale). Officials at Cannondale are optimistic that the company will emerge from Chapter 11 within the next several weeks. The sale still must be approved of by the Courts, but most believe this to simply be a formality. For all intents and purposes, the sale is over. At least three questions are hovering in most people’s minds at this time:

http://www.bikemag.com/news/cannondale_sold/
 

F5000sl

New Member
This is bad news. C'dale is one of the only companies I'd even consider a 26" bike from because they are made here.
 
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