SRAM to acquire Zipp
Written by: Herbert Krabel
Date: Fri Sep 21 2007
Chicago, IL, September 21: SRAM and Zipp announced today 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 and does not come as a surprise to many industry insiders. SRAM's competitors Shimano and Campagnolo both have a nice range of wheels in their lineup, and with the acquisition of Zipp, SRAM would instantly have a technically advanced and highly respected line of wheels among their offerings. Additionally, Zipp's experience with composite materials surely has to be interesting to the folks at SRAM in other areas too.
Stan Day, CEO of SRAM said: “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 commented: “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. ”
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.
The acquisition is expected to be completed within 60 days and does not come as a surprise to many industry insiders. SRAM's competitors Shimano and Campagnolo both have a nice range of wheels in their lineup, and with the acquisition of Zipp, SRAM would instantly have a technically advanced and highly respected line of wheels among their offerings. Additionally, Zipp's experience with composite materials surely has to be interesting to the folks at SRAM in other areas too.
Stan Day, CEO of SRAM said: “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 commented: “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. ”
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.
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Comments
Sram buys Zipp
Reviewed by: Mark Montgomery, Sep 21 2007 1:39PM
Great breaking news, except the forum had it two days earlier. What I want to know is how much did they pay for Zipp, and what shape was the company in. Was it a fire sale, or going out on top????
