Dutch company Pon Holdings said it has agreed to acquire popular bike brands Cannondale, Schwinn and Mongoose from Dorel Industries for $810 million. The acquisition will make the company the largest bike maker globally with $2.5 billion in estimated annual sales.
The company, whose current portfolio includes bike brands such as Gazelle, Santa Cruz and Urban Arrows, expects the acquisition to help it solidify its foothold in the U.S. market, where it plans to sell e-bikes, in addition to road, city and mountain bikes.
“Together, we can further cater to the ever-growing demand for quality and electric bikes, whether it’s for urban use, leisure or sports,” CEO Janus Smalbraak said in a statement.
Some of the other bike brands that are being bought from Dorel include GT, Charge and Caloi. All these brands have a combined annual sales of $1.2 billion, according to Pon.
The company’s move to acquires the brands comes four years after it attempted to buy Smart and Batavus brands for $900 million.