Tech News Flash: SRAM to acquire Zipp, September
SRAM fills last piece of puzzle with planned acquisition
By James Huang
SRAM is expected to utilise Zipp's
considerable experience in composite design and manufacturing.
Photo ©: James Huang
SRAM and Zipp have formally announced that the two parties have signed
a 'Non-Binding Letter of Intent' which states that SRAM expects to wholly
acquire the Indianapolis, IN-based composites and wheel company within
the next sixty days.
While this is clearly a significant development, it likely comes as little
surprise to keen observers within the industry. With the prior acquisitions
of Rock Shox, Avid, and Truvativ, wheel components were among the only
items missing from SRAM's otherwise comprehensive list of component offerings
and rumour and speculation have been rampant in regards to a potential
acquisition for some time now.
According to SRAM CEO Stan Day, "Zipp is a great company and respected
brand, with a strong management team, advanced technology, and superb
manufacturing capability. We look forward to bringing both successful
companies together and synergistically delivering a growing strategic
range of products to our customers."
Andy Ording, President of Zipp, added, "Zipp has remained focused
on market defining technology development in advanced composites and aerodynamics.
After nearly two decades of carbon product manufacturing, the SRAM opportunity
provides additional horsepower and improved global market leverage. SRAM
has a fine reputation for acquisitions and culture integration, affording
us the opportunity to broaden our foundation on which the Zipp team can
build for the long term."
Zipp's current product lineup is decidedly road-centric, including a
wide range of complete wheelsets and rims in both carbon fiber composite
and aluminum, hubs, tires, and a variety of carbon fiber road components
such as handlebars and cranksets. It is entirely within the realm of reason,
however, to expect that that range could very well include off-road components
and wheels in the future.
According to SRAM Road PR Manager Michael Zellman, though, it's simply
"too early to say" exactly how things will proceed from a product
standpoint. It should go without saying, though, that SRAM is sure to
tap heavily into Zipp's considerable experience in composite design and
manufacturing for a wider assortment of applications in the future.
For now, things will mostly remain status quo: the current Zipp management
team will remain unchanged and SRAM reports that there will be no layoffs
resulting from the acquisition. Moreover, Zipp's offices and manufacturing
facilities will remain based in its current location where it will also
continue to handle Zipp-related warranty issues. According to SRAM, all
of Zipp's current distributors, contracts, and business relationships
will be honoured.
Additional information is scheduled to be released in early December.