Bicycle component maker SRAM said a deal to sell 40% of the company to a unit of bankrupt Lehman Brothers has not closed but is moving forward. If the deal falls through, SRAM will merely look for a new strategic financial partner to help finance its global expansion, according to a statement released by SRAM Monday.
“If the transaction doesnt occur there is absolutely no disruption to our operations,” read a statement e-mailed to SportsOneSource Monday by SRAM spokesman Michael Zellman. “We will simply move forward and reconsider finding a new strategic financial partner at some point in the future.”
The e-mail added that “SRAM is financially sound and completely capable of moving forward without the LBMB investment.
The e-mail added that “SRAM is financially sound and completely capable of moving forward without the LBMB investment.
Zellman added that Lehman Brothers filing Chapter 11 shouldnt impair the ability of LBMB to complete the transaction since it is a separate, albeit related corporate entity. But he conceded that “Certainly the headlines loom large and their may be a practical pause. We will certainly know more within a few days.”
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