Cannondale’s new owner, Pegasus Partners II, L.P., is making no changes to Cannondale Europe’s existing staff, HQ, dealer network and overall strategy.
Sales from Cannondale’s foreign subsidiaries – including those in Japan and Australia, as well as Europe – accounted for 42 percent of the company’s total sales in fiscal 2002.
Pegasus plans to sell Cannondale’s motorcycle assets. It was the disastrous venture into motorsports that caused Cannondale to file for chapter 11 bankruptcy protection in January this year, a fact well-known to David Uri, a partner at Pegasus (and a cyclist).
"Cannondale’s recent difficulties were not related to its bicycle business. The problems came from their motorsports effort. The bicycle division has remained profitable, which is a stunning accomplishment given the burden and distraction that motorsports imposed."
Uri said Pegasus, a private equity investment firm sited just 30 miles from Cannondale’s Connecticut HQ, will be a hands-off owner.
"We have no desite to disrupt a winning formula. Our job now is to let the existing Cannondale team concentrate on what they do best: designing, manufacturing and marketing lightweight, high-performance bicycles for the specialty retail market."