SRAM BUYS TRUVATIV?

SRAM continued their global shopping spree yesterday afternoon when they announced that they had signed a Definitive Agreement to purchase Truvativ. The press release stated that deal should 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."

For his part, Micki Kozuschek, Truvativ’s President explained, "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 is currently headquartered in San Luis Obispo, California and the press release states that SRAM has no plans to move Truvativ. The San Luis Obispo office is to remain SRAM's product development arm for cranksets and bottom brackets and may become the center for future product development activities. Micki Kozuschek will stay on and lead the Truvativ organization as General Manager, where he will be responsible for product development, sales and marketing. Truvativ will continue to manufacture their cranksets out of their factory in Taichung and SRAM doesn’t expect there to be any transaction-related layoffs.

Remember the days when SRAM just sold grip-shifters? Those days are long gone and are becoming more and more of a distant memory with each new acquisition. First there was Sachs, then RockShox, then Avid and now Truvativ (hell, I may have even got the order wrong…with that many acquisitions it’s hard to keep track).

In short, SRAM is now in the business of making shifters, front and rear derailleurs, chains, cassettes, brakes, suspension forks, rear shocks, cranksets, bottom brackets, bars, stems, seatposts, chain guides and pedals (not clipless, at least, not yet). That is, arguably, the most complete line-up of bike products in the business. The only market they don’t have a foothold in is the aftermarket wheelset market. Who knows….maybe they have plans for that too. If the past is any predictor of the future, it seems more than likely.

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