SRAM and Zipp announce that they have signed a Non-Binding Letter of Intent for SRAM to acquire Zipp. According to SRAM, the acquisition is expected to be completed within 60 days.
Stan Day, CEO of SRAM says: "Zipp is a great company and respected brand, with a strong management team, advanced technology and superb manufacturing capability. We look forward to bringing both successful companies together and synergistically delivering a growing strategic range of products to our customers."
Andy Ording, President of Zipp says: "Zipp has remained focused on market defining technology development in advanced composites and aerodynamics. 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. Andy 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.
Further information and more detailed plans will be available publicly at the beginning of December. The Chicago, Illinois-based SRAM and Indianapolis, Indiana-based Zipp are approximately 185 miles apart.
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