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Derby Sells Sturmey-Archer to Lenark Limited

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NOTTINGHAM, UK (1 August 2000) — Europe’s largest bicycle group Derby Cycle Corporation has sold Sturmey-Archer, its bicycle gears, brakes and engineering component business to Lenark Limited, a company with a wide portfolio of interests from light engineering to the internet. The deal, which took place a few weeks ago, includes Sturmey-Archer’s Brooks leather saddle factory in Birmingham. “Business has been […]

NOTTINGHAM, UK (1 August 2000) — Europe’s largest bicycle group Derby Cycle Corporation has sold Sturmey-Archer, its bicycle gears, brakes and engineering component business to Lenark Limited, a company with a wide portfolio of interests from light engineering to the internet. The deal, which took place a few weeks ago, includes Sturmey-Archer’s Brooks leather saddle factory in Birmingham. “Business has been extremely difficult for Sturmey-Archer over recent years, with sales and profit margins being squeezed by the strength of sterling, particularly as  the vast majority of Sturmey-Archer sales have been to the Dutch and German export market, with just a few per cent going to Raleigh UK,” says Derby CEO Gary Matthews. Matthews also says that Sturmey-Archer did not fit into Derby’s core business, adding that the investment in technology it would require to keep up with the likes of SRAM and Shimano was too great. According to Matthews, Lenark is the perfect buyer. Lenark purchased 100% of the Sturmey-Archer business as a going concern. Lenark managing director, Clive Walton, says that terms and conditions for Sturmey-Archer employees will be unaffected and Lenark will retain the Sturmey-Archer brand name. As previously announced, the Triumph Road land on which both the Sturmey-Archer and Raleigh plants stand was sold by Derby earlier this year to Nottingham University.  Sturmey-Archer is currently in an advanced stage of negotiation for alternative premises within the Nottingham area. Raleigh, in developing its plans, will move to another local site in the next three years.  No changes in location are planned for Sturmey-Archer’s Brooks saddle business in Birmingham, or for the Amsterdam European distribution center.  (JW)

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