SRAM buys Zipp.

[DocRay]

I heard SRAM bid $14 million for Belgium on Ebay as well, in hope to get good field test opportunities and easy acsses to ProTour races: http://www.cbc.ca/cp/Oddities/070918/K091806AU.html

I thought about going for Belgium, but the shipping was way too high.

[lancejohnson]

Does anyone have a hard source that says the sale is completed? I made some inquiries and heard that an offer has been made, and the deal is now in the due diligence phase (which can take months, but I would expect SRAM to move a bit faster than that)...

[micky]

what a news...any official text?

[11.4]

Heard about it from a Zipp sales person but that doesn't necessarily mean the deal is done. There has to be consternation around the Zipp shop at the idea of being owned by somebody else. Plus, it ties their wheels to SRAM -- on the one hand there'll be plenty of SRAM/Zipp equipped bikes at the Tour next year, but what happens to overlapping sales territories, plans SRAM had for wheels, etc.? It's gossip until there's a signed purchase and sale agreement. This will be an aggressive, high-priced deal if it were to come off.

[bobbyOCR]

I thought about going for Belgium, but the shipping was way too high.

They offered free delivery.

[gregc]

I thought about going for Belgium, but the shipping was way too high.

They offered free delivery.

I wanted belgium too, but my paypal has a $500 limit on it...and they wouldnt take a money order...oh well, ill get the next country that comes along....

[drjones96]

If it is true, I think that the Zipp product range will expand to be more like that of Mavic or Fulcrum. I welcome it.

Also I think that SRAM goes from being a dark horse in the 3 way battle between Shimano, Campy and SRAM to being a legitimate contender. Before this buy they are just a competitor on the groupo front. Now they have wheels, bars, stems, TT bars. They also have MTB stuff where campy doesn't. They have the potential to be the go-to guy for all things road bike components.

[bobbyOCR]

/\ They have really good MTB stuff.

They don't have mtb wheels, but everything else important to kit out a mtb. Now they have nice gear to kit our road bikes. OEM deals on high end bikes maybe? SRAM group and Zipp wheels, bar and stem.

[morephyous]

If this deal goes through, I think you're going to see a lot of Giant TCRs on the road with Made in Taiwan (Gigantex / Novatec) Zipps

[Leviathan]

Think the deal will take some time as I heard SRAM has hired an I-Bank........

............ING Bearings....


(Sorry, am bored and restless with nothing better to do)

[CharlesM]

Just rec'd from SRAM's Capo...

I spoke with him about this earlier, but could not write anything before, but this is a release, so here you are.


September 21, 2007



For Immediate Release:
SRAM and Zipp announce that they have signed a Non-Binding Letter of Intent for SRAM to
acquire Zipp. The acquisition is expected to be completed within 60 days.
Stan Day, CEO of SRAM says: “Zipp is a great company and respected brand, with a strong
management team, advanced technology and superb manufacturing capability. We look forward
to bringing both successful companies together and synergistically delivering a growing strategic
range of products to our customers.”
Andy Ording, President of Zipp says: “Zipp has remained focused on market defining technology
development in advanced composites and aerodynamics. After nearly two decades of carbon
product manufacturing the SRAM opportunity provides additional horsepower and improved
global market leverage. SRAM has a fine reputation for acquisitions and culture integration,
affording us the opportunity to broaden our foundation on which the Zipp team can build for the
long term.”
Operational plans will be finalized and announced when the acquisition is completed. Those
plans will include:
1. The Zipp management team will remain intact and continue to report to Andy Ording.
Andy will report to Stan Day. There will be no layoffs as a result of the transaction.
2. The current high-tech Indianapolis location will remain the manufacturing center for Zipp
wheels and components.
3. The Zipp product warranties will be honored and continue to be serviced in the
Indianapolis facility.
4. The Zipp distribution network will be maintained.
5. All Zipp contracts and business relationships will be honored.
Further information and more detailed plans will be available publicly at the beginning of
December.
www.sram.com www.zipp.com


END RELEASE


Frankly this gives me a woody...

I have already started using SRAM every chance I get as It's to mee the lower profile ergo's and cable routing closer to Campy, but with Shimano compatibility... That the terms dictate the intelectual and manufacturing quality will stay in Indi is great news. And this is simply (at least on the surface) a better cash flow for ZIPP R&D.

So now...

A carbon semideep mountain 29er??

[RTW]

Thanks for the press release pez, and your less than eloquent turn of phrase.

Shimano have Pro. At Eurobike they announced carbon wheels at the 500 euro price point (According to Triathlon Magazine, Germany).

What I see is SRAM playing the OEM game, like they have in the MTB market. A one stop shop. Wheels, Groups and I expect an expansion and 'synergies' of technologies seeing the Truvative brand expand with more stems and seatposts. Hats off to them. SRAM's strategy, is one to admire.

[strobbekoen]

This all sounds nice and well from the 'surface', but i have heard before "nothing will change" from merging companies in order not to upset anyone on the short term. Thruth is that no one of us knows where it's going to go and we'll just have to see wait and see how it turns out. In the end this is all about acquiring a stronger market position. It's a healthy proposition though to have a full fledged 3rd player.

[RTW]

Actually, I think this has the potential to shift the power within the industry. This is about OEM sales, and OEM sales drive the after market. My prediction is that some shimano execs are seriously looking at this and questioning their next move.

[alienator]

This all sounds nice and well from the 'surface', but i have heard before "nothing will change" from merging companies in order not to upset anyone on the short term. Thruth is that no one of us knows where it's going to go and we'll just have to see wait and see how it turns out. In the end this is all about acquiring a stronger market position. It's a healthy proposition though to have a full fledged 3rd player.

Yup. NCR was bought out in Dayton, Ohio, but a condition of the buy was that the NCR logo and signage had to remain. So what was the first thing that changed after the buyout? All the NCR logos and signage disappeared.

What SRAM says they'll do or not do may not bear any resemblance at all to what they actually do.