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Trek announces acquisition of Electra

Published January 6, 2014
UPDATED

WATERLOO, WI (BRAIN) — Trek Bicycle announced that it has acquired Electra Bicycle Company. In a press release issued Monday morning, Trek said the move “provides Electra with business and logistical support as well as distribution assets that will ensure the growth of the brand.”

In a letter sent to dealers, Trek said Electra dealers will benefit from quicker delivery through its three distribution centers; dating and terms that are in-line with the retail business; improved forecasting, inventory availability and customer and sales support; and more marketing and product development.

Early Monday BRAIN reported that Trek was taking over sales of Electra and dealers are being directed to Trek sales reps. A Trek spokesperson said existing Electra retailers are still working with the Vista, California, company's inside sales staff. But, according to sources close to the matter, independent reps selling the Electra brand were let go during a brief conference call.

"Most of the sales force [for Electra] will remain intact," said Eric Bjorling, spokesperson for Trek. "Perhaps sometime in the future we'll re-evaluate. But for now, there's not a ton of change on the sales side."

Trek is fielding dealer questions and concerns on its dealer password-protected site, Dexter.

"I have always admired the Electra brand,” said Trek president John Burke, in the press release. “Skip [Hess] (Electra president) and his team have done some amazing things with limited resources. Trek will be able to provide financial, supply chain, distribution, and sales support that will help Electra take its business to the next level and will stay out of their way when it comes to product and marketing.”

Hess added, “We're thrilled to have a great new partner in Trek. It's going to give us the resources to grow the Electra brand and get more people everywhere riding and loving Electra.”

The Electra brand will continue to be managed and marketed out of its headquarters in Vista, California.

Stay tuned to BRAIN for more updates on this developing story.

Topics associated with this article: Mergers/Acquisitions

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