SRAM Finds Investment Partner
CHICAGO, US – SRAM announced today a new equity partnership with Lehman Brothers Merchant Banking (LBMB), one of the seven asset classes of Lehman Brothers global private equity business. The partnership is the result of an extensive process through which
CHICAGO, US – SRAM announced today a new equity partnership with Lehman Brothers Merchant Banking (LBMB), one of the seven asset classes of Lehman Brothers‘ global private equity business. The partnership is the result of an extensive process through which SRAM has sought a strategic financial investor to support its continued growth in the global bicycle components industry.
LBMB will be a minority investor in SRAM. SRAM Senior Management will continue to lead the Company. The SRAM team has done a great job building a global organization in an exciting industry,” said Stan Day, chief executive of SRAM.
“With 2008 revenues to approach US$ 500 million we have achieved scale where we believe it is prudent to add an experienced institutional investor to our shareholder base. We are very pleased that LBMB is committing its capital and expertise to SRAM.”
SRAM Cycling Advocacy Fund
In connection with the transaction, the Company is establishing the SRAM Cycling Advocacy Fund. The Fund, initially capitalized with $10 million, will support advocacy in the U.S., Europe and Asia on policy issues affecting cycling infrastructure and the bicycle industry.
These funds will be paid out approximately $2 million per year for 5 years. SRAM will seek advice from leading industry associations like Bikes Belong on proposal evaluation and fund distribution and expects to have a grant request process in place by November.