NEW YORK, NY (BRAIN) — Serotta and Blue Competition Cycles are joining Mad Fiber Wheels under the umbrella of the Divine Cycling Group, an investment group formed last year. DCG bought Mad Fiber, its first industry acquisition, in February.
Terms of the agreement were not released except that Blue and Serotta shareholders will become shareholders in DCG and be represented on DCG's board.
Serotta was founded in 1972 by Ben Serotta. The company has been through several iterations. Last year Serotta announced it had "partnered" with financial services group Bradway Capital.
Likewise, Georgia-based Blue was acquired by an equity firm, Lake Rudd Capital Partner, late last year.
In a statement, DCG founder Gary Ullman said, “Collectively, these companies bring together manufacturing expertise across materials and product categories and extensive aerodynamics expertise. They combine American manufacturing knowledge with significant experience operating in Taiwan and elsewhere in Asia. The three businesses’ sales forces cover all major cycling markets, and utilize the best combinations of traditional distributors, dedicated sales offices, trading partners and representatives.
"And they are now brought together under a board that has world class experience in acquisition and strategic integration such that they will be able to better attract investment, more rapidly grow product lines and profitability, and benefit from combined strengths while maintaining individual brand identities under their current management teams. This, as DCG Inc continues its commitment to growth through acquisition and further builds the company.”
Ullman said each company will maintain its current production facilities.
Watch for more on this story Wednesday.
