Santa Cruz Bicycles

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Situation:

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.

Solution:

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.

Dylan Bell joined the Hexagon Capital Alliance team as an Analyst in 2019.

Mr. Bell earned bachelor’s degrees in Accounting and Business Administration from the Argyros School of Business and Economics at Chapman University.

Brandon Clewett is a Managing Director with Hexagon Capital Alliance. He has 17+ years of capital markets experience and has been involved in 100+ merger & acquisition transactions, recapitalizations, and debt and equity capital raises for middle-market clients.

Mr. Clewett’s sector experience includes E-commerce, Consumer Branded Products, Infrastructure and Specialty Manufacturing.  Prior to Hexagon Capital Alliance, he was a Managing Director with Moss Adams Capital, and a Director with KPMG in their corporate finance group.  Before joining KPMG, he was a Vice President at McGladrey LLP in their investment banking division.

Mr. Clewett earned a bachelor’s degree in finance from the Haas School of Business at the University of California, Berkeley and lives in Orange County, CA with his wife and three sons.

Andrew Suen is a Managing Director with Hexagon Capital Alliance. He has 13+ years of experience advising and executing middle-market mergers and acquisitions transactions, including more than 75 sell-side, buy-side and strategic advisory assignments.

Mr. Suen serves as head of the firm’s Diversified Industrials practice. His sector experience includes Converted Packaging Materials; Industrial Technology; Supply Chain Management & Distribution; Automotive Aftermarket; and Business & Professional Services. Prior to Hexagon Capital Alliance, Mr. Suen served in similar capacities advising middle-market companies and business owners with Moss Adams Capital LLC; Mesirow Financial, Inc.; and Brown Gibbons Lang & Co.

Mr. Suen earned a bachelor’s degree in finance and international business from Indiana University Bloomington and lives in Orange County, CA with his wife, daughter, and two sons.

Bradley Erhart is a Vice President with Hexagon Capital Alliance. He has 10+ years of capital markets experience and has been involved in numerous merger & acquisition transactions, recapitalizations, and debt and equity capital raises for middle-market clients.

Mr. Erhart’s sector experience includes Specialty Manufacturing; Supply Chain Management & Distribution; Direct-to-Consumer; and Consumer Products. Prior to this position, he was a Vice President with Moss Adams Capital LLC. He served in similar capacities advising middle-market companies and business owners with Strategic Equity Group, a boutique investment banking and valuation advisory firm. Mr. Erhart began his career as an Analyst at Murray Devine, a valuation advisory firm in Philadelphia.

Mr. Erhart earned bachelor’s degree in Economics from the University of Pittsburgh. He currently resides in Orange County, CA with his wife and dog.