Dutch conglomerate Pon, which recently bought Derby Cycle, has agreed to 'a financing arrangement' with Cervélo and has retained an exclusive option to purchase the Canadian company.
Cervélo announced the agreement late Friday on its website:
Cervélo has entered into a financing arrangement with PON Holdings BV. In addition, Cervélo and PON have signed a Letter of Intent that enables both parties to agree on a sale of Cervélo in exclusivity.
Cervélo representatives were not immediately available Friday evening to comment on the agreement.
Pon recently bought 92 percent of the shares in Derby Cycle Werke, the German company that owns the Raleigh, Univega and Kalkhoff brands, among others, for roughly a quarter billion dollars.
Pon Holdings is an international trading and service company that employs almost 11,000 people at over 250 branches across 12 countries. The company started in the middle of the last century as a bicycle importer and at one point manufactured Pon-branded bikes. Later it expanded into multiple industries, including automotive. Earlier this year it purchased Gazelle, a Dutch bicycle brand.
Cervélo was founded in 1995 by Dutchman Gerard Vroomen and Canadian Phil White. It is based in Toronto.