PON Holdings Buys Dorels Bicycle Sports group

[Danger Dassie]

25 minutes ago, Ossie NL said:

Interested in what brands your thinking off??

Imho ... In this brand saturated market, none. Unless they take on another existing brand that's represented locally. 

Personally I don't feel Cannondale SA leverage Hatherly's association enough, if at all. Certainly not comparable to when he was with Specialized. In saying that though, we don't know what the structure and details are. 
With Rush Sports however they've a dynamic support for the schools league, where Hatherly started out essentially. 

[DIPSLICK]

Hopefully quality pics up on the cannondales 

[DieselnDust]

SoIs this an advert for Rush or an assessment of viability of change to the distribution network.

What I read is a lot of soft issues that doesn't make a strong business case.

At the end of the day what matters is the infrastructure and dealer network required to support the marketing of 4additional brands vs business as usual.

This is not a simple as an opportunity statement. There are far reaching impacts to cash flow projections, warehousing costs, staff costs and marketing costs.

[DJuice]

23 minutes ago, Danger Dassie said:

Imho ... In this brand saturated market, none. Unless they take on another existing brand that's represented locally. 

Personally I don't feel Cannondale SA leverage Hatherly's association enough, if at all. Certainly not comparable to when he was with Specialized. In saying that though, we don't know what the structure and details are. 
With Rush Sports however they've a dynamic support for the schools league, where Hatherly started out essentially. 

Was thinking along those lines last night, with Santa Cruz and Greg Minnaar, there must be scope for Cannondale and Hatherley.

 

[Danger Dassie]

2 minutes ago, DieselnDust said:

SoIs this an advert for Rush or an assessment of viability of change to the distribution network.

What I read is a lot of soft issues that doesn't make a strong business case.

At the end of the day what matters is the infrastructure and dealer network required to support the marketing of 4additional brands vs business as usual.

This is not a simple as an opportunity statement. There are far reaching impacts to cash flow projections, warehousing costs, staff costs and marketing costs.

Neither. 
But so called soft issues have a pronounced effect on business. But nobody here is making a business case.

Completely agree on all else. And am pretty sure that people for the most part are aware of these issues. All of which are not unique either.
As mentioned previously though, purely speculative, and really this is why forums exist. People with different perspectives can discuss topics such as this without malice and a pinch of salt. It doesn't detract from anything.

[Christie]

Ponnondale?

[DieselnDust]

51 minutes ago, Danger Dassie said:

Neither. 
But so called soft issues have a pronounced effect on business. But nobody here is making a business case.

Completely agree on all else. And am pretty sure that people for the most part are aware of these issues. All of which are not unique either.
As mentioned previously though, purely speculative, and really this is why forums exist. People with different perspectives can discuss topics such as this without malice and a pinch of salt. It doesn't detract from anything.

I get that but we're postulating about brand association with pro riders making a business case for Pon to consider altering the dealer network.that would be bad for business

[Danger Dassie]

7 minutes ago, DieselnDust said:

I get that but we're postulating about brand association with pro riders making a business case for Pon to consider altering the dealer network.that would be bad for business

No we're not. 

[DieselnDust]

certainly sounds like it

so forgive me if i got it wrong

[Danger Dassie]

Pon/Dorel deal leveraging greater consolidation and control. Will be interesting to see how this rolls out in outlier markets such as ZA.
For the US the message is clear, theres another big player among Trek, Specialized and Giant. Also can't help but wonder about the effects on Merida in Europe.

https://www.bike-eu.com/production/nieuws/2021/10/new-cannondale-assembly-site-in-europe-operational-u-s-facility-opening-next-year-10141549

[DieselnDust]

1 minute ago, Danger Dassie said:

Pon/Dorel deal leveraging greater consolidation and control. Will be interesting to see how this rolls out in outlier markets such as ZA.
For the US the message is clear, theres another big player among Trek, Specialized and Giant. Also can't help but wonder about the effects on Merida in Europe.

https://www.bike-eu.com/production/nieuws/2021/10/new-cannondale-assembly-site-in-europe-operational-u-s-facility-opening-next-year-10141549

More brands will try to decentralise their fabrication and assembly points as markets grow.  Supply out of Asia has proven to be unreliable during this pandemic but also the negative impact on jobs in the USA and Europe will see governments incentivize manufactures to bring more of the supply chain back. Carbon fibre manufacture will likely remain in Asia as Europe and the USA  decarbonise their economies (Carbon fibre precursors manufacture is carbon intensive).

It is not unfeasible to see Omnico expand into an African assembly centre for PON Holdings products. This could have economy of scale benefits for the other brands distributors as well.

[NotSoBigBen]

As much as I sometimes get a bit sarcastic about the exchanges between chaps here on the hub there is a wealth of knowledge and understanding of the bike business and technology. That's one of the biggest things that keeps me here!

 

Keep on keeping on chaps ????

[Danger Dassie]

"Dorel Industries has completed the sale of Dorel Sports, its bicycle segment, to the Dutch mobility group, Pon Holdings. For the sale price of US $810 million, Pon now has brands including Cannondale, Schwinn, GT, Caloi and Mongoose in its hands.
The transaction consisted of 100% of the shares of its indirect wholly-owned subsidiary companies comprising Dorel Sports as well as certain related assets. From the sale, Dorel Industries received net proceeds of approximately US $735 million, which will be paid in the form of a special dividend of US $12.00 per share."

https://www.bike-eu.com/market/nieuws/2022/01/dorel-sports-officially-in-hands-of-pon-holdings-10142026