Pon Holding completes purchase of owner of Cannondale

Dutch Group Pon Holdings has completed the purchase of Dorel Sports, a sports segment of Dorel Industries, for $810 million. The deal will allow Dorel to reduce its debt, return capital to shareholders and focus on its remaining business, which includes segments such as car seats and home furnishings.

Dorel has made a net profit from sales of approximately $735 million, which will be used to pay a special dividend of twelve dollars per share and to reduce debt.

Dorel Sports is the brand group of Cannondale, Schwinn, GT, and Mongoose, while Pon is the parent of Cervélo, Santa Cruz and Gazelle. The Group, based in Amsterdam, is in full expansion and will have combined revenues from the cycling segment of €2.5 billion. Dorel Sports, in particular, has an annual revenue of $1.2 billion.

In 2012, Pon Holdings acquired Dutch Gazelle and subsequently acquired Kalkhoff, Forus, Cervélo, Santa Cruz, Urban Arrow and BBB Cycling, entering the world’s top five manufacturers and adding to revenues of 1.5 billion euros.

Pon Holdings has 14,000 employees and annual revenues of 7,500 million euros, offering everything from automobiles to infrastructure and construction machinery, generators and marine solutions, as well as in the agricultural sector. In addition, it is present in forty countries. Pon Bike, meanwhile, has 2,400 employees and a 1,500 million euro business. 70% of its sales are electric bicycles. Dorel Sports generates $1.2 billion in revenue and is headquartered in Wilton, USA, in addition to several manufacturing and distribution centers. In Europe, it has subsidiaries in the UK, Germany and the Netherlands, where it has its main European headquarters. Dorel also produces in Almelo (Netherlands), Brazil, Japan and Taiwan.

Rockie Steve

Leave a Reply

Your email address will not be published. Required fields are marked *