GIVISIEZ, Switzerland (BRAIN) — Scott Sports SA has formed two joint ventures with Sheppard Industries to distribute Scott products in Australia and New Zealand.
Sheppard Industries claims to tbe largest wholesaler of bikes and bike-related products in both countries. Scott Sports and John Struthers, the owner of Sheppard Industries, have entered into an agreement to establish two new jointly owned companies to be called Sheppard Cycles Australia, and Sheppard Cycles New Zealand. Other investors will be Kim Struthers, Stephen James, and Steve Paraskevas. Paraskevas will head up both companies as managing director.
Beat Zaugg, the CEO of Scott, said that "I am extremely excited to be partnering with an experienced and passionate team at Sheppard, and I am looking forward to supporting the current business model through its next cycle of growth. Having worked with the team at Sheppard over the last five years with the Scott brand, I recognize the true benefits of partnering with such an established team of staff, retailers and existing brand partners, and I strongly feel we can continue to grow the current brand portfolio which compliments the Scott brand."
Zaugg also said, "We are very focused on ensuring that our investment in areas such as IT, logistics, and marketing will help build on the current level of service being offered by Sheppard to its retailers. We look forward to working closely with the current team and we see no major changes in the strategy and business model that Sheppard currently operates. I have been working with John Struthers and the team for a long time, and I have been very impressed with the performance of the business and see a great future in this new chapter for Sheppard Cycles in Australia and New Zealand."
John Struthers, the chairman and owner of Sheppard, said that "the forming of the two new companies with Scott Sports will provide significant benefits for Sheppard current retailers with greater economies of scale across purchasing, marketing, logistics, retail services, and product development.
"I am extremely pleased that this new partnership will add further investment in key areas of the business and provide added benefit to our current suppliers and customers with a business partner who is just as passionate about cycling and growing the retail markets in Australia and New Zealand, and will obviously open up further opportunities for our growing export markets. For me personally it was extremely important to have a partner who reflected our core values and culture working together for mutual benefit, respect for all, and a keen appreciation of the value of synergy."
The Sheppard Group carries Avanti, Malvern Star, Repco, ABD, Zero, and Peak Fuel and distributes several top bike brands in Australia and New Zealand, including Scott, Diamondback, Raleigh, Giro, Haro, Cateye, Muc-Off, and Kenda.
