News

CHICAGO, US – SRAM and Lehman Brothers Merchant Banking (LBMB) have completed their transaction, giving LBMB a 40% stake in SRAM through a strategic investment. With that two LBMB Directors will join the Board of Directors of the US based bike component maker.

Also Lance Armstrong (photo) is joining SRAM as he made a meaningful passive investment through LBMB to further strengthen his ties with SRAM. The seven-time Tour de France winner is returning to road racing with the SRAM-supported Team Astana. Next to that he will serve as a technical advisor for SRAM’s product development teams. 

“Getting to the finish line, given the current state of the financial markets, is a reflection of LBMB’s role as one of the leading private equity organizations in the middle market and our strong SRAM management team,” said Stan Day, chief executive of SRAM. “All of us at LBMB are thrilled to be closing our investment in SRAM.

The company is a leader in its industry with tremendous momentum and a bright future. We look forward to working with SRAM’s management team to build the business and realize its full potential in the years to come,” said Charlie Moore, LBMB managing director.

The transaction brings a number of opportunities for SRAM and the cycling industry, including: SRAM adds LBMB as very capable strategic financial partner to its shareholder base. Next to that the SRAM Cycling Advocacy Fund has been established with US$ 10 million. These funds will be used over the next five years to support efforts to improve cycling infrastructure.