Pon Holdings, the parent company of many bicycle brands, including Gazelle, Cervélo and Santa Cruz, has acquired Dorel Sports. This American company is the owner of well-known bicycle brands such as Cannondale, GT, Mongoose and Schwinn. Earlier this year, Pon acquired California retail chain Mike’s Bikes.
Largest bicycle manufacturer in the world
By merging Pon.Bike and Dorel Sports, it surpasses Giant Bicycles in terms of turnover and becomes the largest bicycle manufacturer in the world. According to Pon’s press release, the combined turnover amounts to approximately 2.5 billion euros.
Pon.Bike owns the brands BBB Cycling, Cervélo, Focus, Gazelle, Juliana, Kalkhoff, Lease a Bike, Reserve Wheels, Santa Cruz, Swapfiets, Union and Urban Arrow. Dorel Sports owns the Caloi, Cannondale, Charge, GT, Mongoose and KidTrax brands.
Janus Smalbraak, CEO of Pon Holdings: “Today’s step is a milestone in the creation of a globally leading bicycle company with a variety of quality brands. With the acquisition of Gazelle in 2012, we launched a strategy that has gradually led us to become the 1.5 billion bicycle company we are today, with great comfort and performance bicycle brands, 70 percent of which are electric. As a result of this strategy, we have now peaked with the acquisition of Dorel Sports. They have a rich history with their iconic bicycle brands that all have an impressive heritage. Schwinn is an institution in the USA. Caloi the pride of Brazil. And Cannondale is a truly global brand with an excellent reputation.”
Martin Schwartz, President and CEO of Dorel, said: “In response to feedback from our shareholders, Dorel began an in-depth review of strategic alternatives earlier this year. Our objective has always been to create value for our shareholders. The Dorel Sports divestiture provides a unique opportunity to unlock value by addressing strong demand for scalable assets in the bicycle segment. The decision to sell Dorel Sports has been a difficult one. Nevertheless, we are confident that this transaction represents full value to Dorel shareholders.”
Meeting growing demand
Smalbraak also emphasizes the possibilities that the growing popularity of cycling currently offers: “Dorel Sports is really complementary to Pon.Bike. That’s why this is such a logical step. Together we can further meet the ever-growing demand for quality and electric bicycles, whether for urban use, leisure or sports. Cycling is not only healthy. It also plays a vital role in fighting congestion in inner cities. It is one of the most sustainable modes of transport. We are committed to making cycling a powerful part of mobility.”