Tech News Flash February 19, 2008
Edited by Sue George
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Shimano acquires Pearl Izumi for US$69.5M
By James Huang
Shimano has purchased Pearl Izumi
Photo ©: James Huang
Shimano has purchased Pearl Izumi, the apparel and footwear division
of fitness giant Nautilus, Inc., for US$69.5M. The purchase price includes
$65.3 million in cash and the assumption of $4.2 million in long-term
debt along with any net working capital adjustments. Pending regulatory
approval and closing conditions, the deal is expected to be completed
by March 31, 2008.
Pearl Izumi will become a wholly owned subsidiary of Shimano American
Corporation (SAC) and Shimano will also own Pearl Izumi's facility in
Kirchzarten, Germany along with the rights to Pearl Izumi sales and distribution
throughout North and South America, Europe, Australia and select other
countries with the exception of Japan and most of Asia.
"The acquisition brings together two companies started by Japanese
families who share a passion for cycling," said SAC President David
Pfeiffer. "Both have strong research and development backgrounds,
offer industry leading innovations, and share an obsession with quality
and performance. We'll continue to build the respective brands and remain
dedicated to the healthy independent dealer networks we've both enjoyed."
"The entire team at Pearl Izumi USA and Europe are excited about
opportunities and benefits we gain in becoming part of Shimano,"
said Pearl Izumi President Juergen Eckmann. "Shimano provides knowledge
and expertise which will make our brand stronger and we in turn have a
great deal of experience in performance apparel, fabric technologies and
run footwear that Shimano did not previously possess."
"We believe this divestiture is in the best interest of shareholders
by providing liquidity and keeping our organization focused on restoring
profitability to our global fitness business," added Bob Falcone,
President and CEO of Nautilus, Inc. "Pearl Izumi is an excellent
brand of apparel and footwear for cycling and running. We are pleased
to have found a strategic buyer in Shimano that values the brand as well
as our talented apparel and footwear staff."
According to SAC, Pearl Izumi will become part of a "broad dual
brand" strategy whereby Shimano will continue to offer its own line
of branded footwear and apparel in concert with Pearl Izumi footwear and
apparel in all of its markets. SAC has also stated that Pearl Izumi will
remain a standalone company and its current operations and management
will remain in its Broomfield, Colorado and Kirchzarten locations.
"Pearl Izumi is a leader in the performance sports apparel and footwear
market, and we plan to keep them in that position," Pfeiffer said.
"Pearl Izumi's design expertise creates products for the avid cycling
and running enthusiasts and we'll provide Juergen Eckmann and his team
with all of Shimano's support and resources needed to continue that tradition."
For a thumbnail gallery of these images, click here
James Huang / Cyclingnews