The Dutch Pon Group and Canadian conglomerate Dorel Industries Inc. officially announced on Oct. 11 that Pon.Bike (brands Cervélo, Focus, Gazelle, Juliana, Kalkhoff, Santa Cruz, Union, etc.) will acquire Dorel Sports (brands Cannondale, Caloi, GT, Mongoose, Schwinn, etc.). According to the two parties, this mammoth marriage will create “a leading global bicycle company with sales of approximately €2.5 billion.” The acquisition, for which the Dutch are putting around CA$1 billion ($810m-€701m) on the table, is expected to close before the end of the first quarter of 2022.
Pon Holdings has been building a global portfolio of leading bicycle brands for more than a decade. Today, its bicycle subsidiary Pon.Bike employs about 2,400 people and generates annual sales of €1.5 billion. E-bikes account for 70 percent. In August 2021, Pon.Bike also acquired the U.S. IBD Mike’s Bikes with its 270 employees and 12 locations. This U.S. specialty retail chain is also a strong online player and has its own brand, Public, among other things.
Dorel Sports, in turn, includes Cycling Sports Group (CSG), which supplies IBDs, and Pacific Cycle Group (PCG), which supplies mass retailers (including those outside the industry). While the premium brand Cannondale, owned by CSG, is well-positioned globally, the ”historic” U.S. brand Schwinn, owned by PCG, is considered “number one in awareness” in its home market. The same rich history applies to Brazilian bicycle manufacturer Caloi, which is not only the market leader in its home country but also occupies a leading position throughout Central and South America.
Unlike its parent company Dorel Industries, Dorel Sports is not headquartered in Montréal, Canada, but in the U.S. in Wilton, CT. Dorel Sports’ annual sales are $1.2 billion, only slightly less than Pon-Bike’s annual sales.