Merida Restructures German Business

ENGELSKIRCHEN, Germany (August 16) - Merida International recently canceled its German joint venture Merida Fahrrad Vertriebs GmbH with industry veteran Jupp Arents and founded a new company together with another German bicycle industry veteran. Wolfgang Renner, founder and general manager of Centurion Renner KG is now also general manager of the new Merida Centurion Germany that starts with a EUR 2 million investment. Merida holds a 51% share in the new company and Wolfgang Renner 49%. Due to this deal Renner will close its assembling and warehouse operation in Hiltburghausen. All 21 employees will be laid off at the end of October. With the new company Merida International aims on expanding its distribution in Germany. At this moment Merida is distributed mainly through the leading German bicycle buyers group ZEG. Due to the restructuring the ZEG isn't willing to list Merida bicycles any longer. But according to Wolfgang Renner, "Many ZEG dealers are still interested in selling Merida bikes. I promise them the same conditions as the ZEG." In the meantime Jupp Arents is working on a new bike range with his new company, Jupp Arents Bike GmbH. Arents expressed his disappointment about his former cooperating partner Merida. Both worked together for ten years." At the upcoming IFMA show in Cologne (from 13 up to 16 September) Arents will present his new bike range.(JB)