CHICAGO, IL (BRAIN)—SRAM and Zipp have signed a non-binding letter of intent for SRAM to acquire Zipp. The acquisition is expected to be completed within 60 days.
“Zipp is a great company and respected brand, with a strong management team, advanced technology and superb manufacturing capability,” said Stan Day, chief executive officer of SRAM. “We look forward to bringing both successful companies together and synergistically delivering a growing strategic range of products to our customers.”
“Zipp has remained focused on market defining technology development in advanced composites and aerodynamics,” said Andy Ording, president of Zipp. “After nearly two decades of carbon product manufacturing the SRAM opportunity provides additional horsepower and improved global market leverage. SRAM has a fine reputation for acquisitions and culture integration, affording us the opportunity to broaden our foundation on which the Zipp team can build for the long term.”
Operational plans will be finalized and announced when the acquisition is completed. Those plans will include:
1. The Zipp management team will remain intact and continue to report to Andy Ording. Ording will report to Stan Day. There will be no layoffs as a result of the transaction.
2. The current high-tech Indianapolis location will remain the manufacturing center for Zipp wheels and components.
3. The Zipp product warranties will be honored and continue to be serviced in the Indianapolis facility.
4. The Zipp distribution network will be maintained.
5. All Zipp contracts and business relationships will be honored.
SRAM will share further information and more detailed plans at the beginning of December.