Canadian company Dorel Industries Inc now has a presence in the UK market after buying Hot Wheels and Circle Bikes for an undisclosed sum.
These two distributors, who are responsible for Mongoose, GT and Charge in the UK, will now be known as Cycling Sports Group UK (CSG UK) under the Dorel umbrella. Russell and Neil Merry, the former owners of Hot Wheels and Circle Bikes, were named as co-managing directors of CSG UK. Last financial year, Hot Wheels and Circle Bikes earned combined revenues of £14m.
Dorel’s latest acquisitions will affect Cannondale, which was bought by Dorel at the beginning of 2008. From January 2010, Cannondale will be distributed in Britain by CSG UK.
CSG UK, based in Poole, Dorset, will coordinate all sales, marketing and customer service of their brands and will distribute through the Independent Bike Dealer network.
Russell Merry said: “We believe that Dorel’s CSG business is set to be one of the fastest growing bicycle companies in the world in what can only be described as a positive environment for the bicycle business.”
The president of Dorel’s recreational and leisure segment, Robert Baird, said that this move was part of their “multi-faceted strategy to grow our bike business into a global force.”
Dorel recently acquired Gemini Bicycles in Australia and created a subsidiary called Cycling Sports Group Australia.