News Article

Derby Cycle Corp. Restarts as Raleigh Cycle Ltd.

Home

GUERNSEY, UK (October 15) – Derby Cycle Corporation is being renamed Raleigh Cycle Ltd. Next to this new name for the holding company, Derby USA becomes Raleigh America while the oldest brand name in the bike business will also be applied to the other operations, so we will soon be dealing with Raleigh Canada, Raleigh […]

GUERNSEY, UK (October 15) – Derby Cycle Corporation is being renamed Raleigh Cycle Ltd. Next to this new name for the holding company, Derby USA becomes Raleigh America while the oldest brand name in the bike business will also be applied to the other operations, so we will soon be dealing with Raleigh Canada, Raleigh UK, Raleigh China, and Raleigh Taiwan. A new name for Derby Cycle Werke in Germany has not yet been finalized.
The bondholders of Derby Cycle Corporation have accepted Alan Finden-Crofts’ bid for the company, at the end of a process begun by the declaration of technical bankruptcy in August. Bicycle industry veteran Finden-Crofts now owns 42 percent of total equity in the new company, with Perseus Partners, Thayer Capital and Soros Equity Partners also holding 42%. The remaining 16 percent of equity is in the hands of Derby’s international country managers. In terms of share type, however, Finden-Crofts holds 84% of the voting shares that makes him the actual owner of Raleigh Cycle Limited. Perseus, Thayer and Soros together control 84% of the preference (non-voting) shares. The managers’ equity holding comprises 16% of the total of ordinary (voting) shares and 16% of the total preference shares. About what has been paid for Derby Cycle Corporation, Finden-Crofts stated, “Together with the company’s debts, our offer is worth between $77.5 million and $80 million.”
More details about the change of the Derby Cycle Corp. ownership and about Finden-Crofts’ plans for the restructuring of the company’s operations are in Bike Europe’s October edition that is distributed next week. (TK)

Comment on this article