Founded in 1993, Santa Cruz Bicycles, Inc. (“SCB”) is a leading, innovative manufacturer of high-end, customizable mountain bikes utilizing aluminum and carbon materials. SCB has a strong history of innovation and is founded on superior design and engineering capabilities. The Company is one of the fastest growing and premier mountain bike brands in the world.
Rob Roskopp (Co-Founder and CEO) and Rich Novak (Co-Founder) were evaluating various strategic alternatives to take the Company through its next phase of growth. The shareholders strongly believed a strategic partner with deep distribution channels in Europe would be in the best position to capitalize on the Company’s various growth opportunities. Simultaneously, the shareholders’ objectives were to realize a partial liquidity event at a maximum market value.
We were engaged to identify a partner that recognized SCB’s value proposition and the worldwide potential of the SCB brand.
SCB ultimately entered exclusive negotiations with Pon Holdings, B.V. (“Pon”), a multi-billion-dollar European conglomerate.
Pon saw in SCB a premier brand with strong distribution in the US and tremendous potential to leverage Pon’s distribution in Europe.
We negotiated an extraordinary valuation and transaction structure, addressing the objectives of multiple shareholders.