Bankrupt Iron Horse Bicycles Acquired By Dorel
The troubled Iron Horse Bicycles company has been bought by Dorel Industries Inc. owner of among them Cannondale, Schwinn, GT, and Sugoi. The Canadians announced the acquisitions of certain assets of Iron Horse Bicycles like
MONTREAL, Canada – The troubled Iron Horse Bicycles company has been bought by Dorel Industries Inc. owner of among them Cannondale, Schwinn, GT, and Sugoi.
The Canadians announced the acquisitions of certain assets of Iron Horse Bicycles like the inventory, various trademarks and trade names, as well as the ‘Iron Horse’ brand, in a transaction valued at € 3.35 million (US$5.2 million).
The assets were acquired in a bankruptcy auction by Iron Horse’s secured lender following that company’s decision to suspend operations for financial reasons. In 2008 Iron Horses sales still reached € 16 million (US$25 million) globally.
Iron Horse, marketed throughout North America and internationally, is best known for its downhill and extreme trail bikes. Founded in 1987 in New York, Iron Horse Bicycles quickly established themselves. In addition to downhill and extreme trail bikes, Iron Horse products range from mountain bikes, road bikes, and comfort bikes to juvenile bikes and hybrids.
“Adding Iron Horse to our stable of existing bicycle brands, such as Cannondale, Schwinn, GT and Mongoose, brings depth to our mountain bike offerings,” said Robert Baird, President of Dorel’s Recreational/Leisure segment. “We see a growing interest in mountain biking and racing. Therefore the addition makes Dorel better suited to reach new retailers and, in turn, consumers.”
“This latest purchase is in line with the strategic road map we have developed to build our bicycle business into the leading global bicycle company,” stated Dorel President and CEO, Martin Schwartz. “While their 2008 sales were US$25 million, we are confident we can significantly grow this number. Iron Horse is another excellent brand that we will be able to leverage through our vast resources. The purchase price was most favourable and we look forward to an excellent return on this investment.”