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Has Pacific purchased Cannondale? same as Schwinn & GT?(6 posts)

Has Pacific purchased Cannondale? same as Schwinn & GT?saraspeed
Feb 23, 2003 10:25 AM
my LBS just told me that a rep from Schwinn / GT came in and told him that Pacific the parent of Schwinn was buying Cannondale -- has anyone heard that?

And would they drop road bikes? Schwinn and GT no longer have road bikes - and my bike shop says it is due to larger market being in Mountain Bikes -- could the Cannondale road bike be over with?
too early to tellcyclopathic
Feb 23, 2003 11:20 AM
their creditors have the first bid, they get it if there's no takers. Rumor says Am Bic group (the same guys who own LS, Merlin and Tomac) was sniffing around they look to diversify base. You can sleep well Pacific won't be able to swallow yet another peace of pie and from Walmart prospective Cannondale doesn't have much value.
too early to tellgeeker
Feb 23, 2003 11:43 AM
Yes, the creditors (Pegasus Partners) have the first ("stalking horse") bid. I've heard (word of mouth) that American Bicycle Group is taking a look, don't know if they'll bid. Haven't heard anything about Pacific. The Accell Group from Europe has announced to the press that they'll look:

http://www.cyclingnews.com/tech/?id=2003/news/feb21
ABGcyclopathic
Feb 23, 2003 12:13 PM
from business point of view it makes sence for ABG. They pretty much own Ti market and trying to get a foot in Al with Ghisallo. At present time they sub Al to Taiwan and they aren't very happy about quality. Cdale hands down is the best Al production, have recognized name blah-blah-blah.

Now I haven't heard any dealer too excited about doing business with ABG.
Pacific already having trouble selling at Walmartlancezneighbor
Feb 23, 2003 5:06 PM
WalMart is finding customers don't want to pay even 10 dollars more for a Schwinn over a Next or Pacific brand bike. Cannondale doesn't meet Pacific's mode of operation: specing overseas bikes.
Not likely to happen,TJeanloz
Feb 24, 2003 1:00 PM
Pacific hasn't purchased Cannondale, and they aren't likely to. Word on the street is that Pacific itself is up for sale- its private equity backer (Wind Point Partners) is getting eager to make their money back. The hilarity is that most analysts believe that the Company is too big to be sold as a single unit, and may have to be broken up to be sold.