Filed under: Deals, Private equity industry
If there was ever a long-standing company in the bicycle making business, it is Cannondale. In fact, Cannondale used to be a public company that traded under the stock ticker “BIKE” before it imploded and went bankrupt. This was ultimately acquired by private equity, but it wasn’t a public buyout. The higher-end bike manufacturer was bought in bankruptcy in 2003 and the prior common shareholders got a total tax write-off.
This morning Forbes ran a story from Thomson Financial out of London noting that Princess Private Equity Holding Ltd. has now sold Cannondale Bicycle Corp. for between $190 to $200 million through its partnership Pegasus II partners. Cannondale was purchased out of bankruptcy by Pegasus II for nearly $60 million.
A 200%+ gain in almost 5-years isn’t too simple to knock. Let’s hope the buyers can run this one better than it was run the first time around.
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