SRAM has signed a Definitive Agreement to purchase Truvativ. The transaction is expected to close by mid October.
Stan Day, the President of SRAM said, “Truvativ is a great company with a remarkable track record of growth and innovation. SRAM is excited to bring the Truvativ Team and products into our organization. Cranksets and bottom brackets complete SRAM's drivetrain product line.”
Micki Kozuschek, the President of Truvativ said: “Truvativ was at a crossroads to either
make a complete drivetrain ourselves or team up with SRAM. I am excited that we now have a complete drivetrain and all the necessary human and financial resources to make it the best in the industry. Great products will be coming your way.”
Truvativ headquarters will remain in San Luis Obispo, California, as SRAM's product development arm for cranksets and bottom brackets. In the future it may take on additional development activities. Micki Kozuschek will lead the Truvativ organization as General Manager responsible for product development, sales and marketing. Truvativ's factory in Taichung will continue to be the manufacturing location for cranksets. It will continue to be led by Gary Peng. There will be no transaction related layoffs.
There will be no changes to Truvativ order processing or customer service for this model year. We will be linking order processing and customer service for SRAM and Truvativ for the 2006 model year. The specific changes will be will be announced at the Taipei show.
The integration goals for the two companies include:
- SRAM to support Truvativ's MY06 product introductions and sales efforts as led by Micki.
- Centralize customer service and order processing by June 1, 2005.
- Focus on product line coordination for MY07.
