SEATTLE, WA (BRAIN) — A newly formed investment group has purchased carbon wheel manufacturer Mad Fiber, the first of several bike industry acquisitions it's eyeing in 2013.
Divine Cycling Group was founded in January by Gary Ullman and Dan Devine, who, according to the company’s website, have raised more than $1 billion in capital to grow manufacturing and high-tech companies in the health, fitness, packaging and biotechnology fields. Both have significant experience in corporate acquisitions and mergers, the site says.
Their goal is to acquire and finance small to medium-sized companies in the bike industry that lack the scale and resources to become a global player. The company said it will divvy up its focus, with half of its investments going toward made-in-USA brands and the other half to European and Asian-based manufacturers.
“We are thrilled to have entered the cycling market through the acquisition of Mad Fiber, which brings with it revolutionary wheel technology and products, as well as a management team with a history of success in the industry,” Ullman said in a release. “We look forward to using Mad Fiber as a platform for additional medium to larger strategic acquisitions in the short term,” Ullman added.
Industry veteran Ric Hjertberg launched Mad Fiber in spring 2010 along with Max Kismarton, chief technologist, and Russ Riggins, Mad Fiber’s CEO. Hjertberg is the founder of Wheelsmith and Wheel Fanatyk. He was also the new technology manager at Full Speed Ahead. All will remain with DCG.
Mad Fiber sells through more than 150 dealers in the U.S. and its products are available in more than 20 countries.
“While considering several options to finance Mad Fiber’s growth and future product development, it quickly became apparent that DCG represented the best path forward,” Riggins said in a release. “Mad Fiber will have the ability to more rapidly expand its product offerings, improve sales, distribution and customer service, and will benefit from partnerships with future DCG acquisitions and the efficiencies that can be realized through being part of a larger organization.”