Dorel Industries Inc has acquired the assets of Hot Wheels and Circle Bikes, the UK distributors of the Mongoose and GT brands.
This latest purchase is the third transaction in two months. A new subsidiary, to be known as Cycling Sports Group UK (CSG UK), has been created and will be IBD-only.
To be HQ’d in Poole, Dorset, CSG UK will coordinate all sales, marketing, distribution and customer service for Mongoose and GT. CSG UK take over the Cannondale distribution in January 2010.
Robert Baird, President of Dorel’s Recreational/Leisure segment said the creation of this newest subsidiary follows a similar initiative in Australia last month and underlines Dorel’s commitment to take control of its international bicycle brands in order to accelerate growth within the critical IBD channel.
“We have developed a multi-faceted strategy to grow our bike business into a global force and we are moving ahead decisively with this plan by leveraging our excellent portfolio of recognised brands and by investing in leaders in their respective markets. CSG UK will now be that much closer to the market and will react quickly to both dealer and consumer demands."
Russell and Neil Merry, the former owners of Hot Wheels and Circle Bikes, have been named Co-Managing Directors of CSG UK.
Hot Wheels was a family-owned partnership, having been founded by the father of Russell and Neil Merry. Hot Wheels also launched and funded über-chic brand Charge Bikes.
“This is an exciting time and opportunity for growth in the global bicycle industry,” said Russell Merry.
“The UK has many positive factors favouring the industry with increasingly cycle friendly central and local government policies to help beat congestion, cut obesity rates and address environmental concerns.
"Neil and I recognised that our local knowledge and experience could take the business to the next level if we had the backing and global horsepower of Dorel.
"We believe that Dorel’s CSG business is set to be one of the fastest growing bicycle companies in the world in what can only be described as a positive environment for the bicycle business.”