PRESS RELEASE
Pegasus Capital Advisors Wins Buyouts Magazine's 'Turnaround of the Year' Award for Cannondale Bicycle
Award cites private equity firm's financial creativity and operating excellence, which fueled the bicycle manufacturer's turnaround and successful sale to strategic buyer
NEW YORK, April 1 /PRNewswire/ -- Pegasus Capital Advisors has been awarded Buyouts Magazine's prestigious "Turnaround of the Year" award for its highly successful acquisition, rejuvenation and ultimate sale of Cannondale Bicycle Corporation.
"The Connecticut-based buyout firm didn't shy away from Cannondale Bicycle's 11 consecutive unprofitable quarters, the possibility of a Chapter 7, or the specter of a complex Section 363 sale. Pegasus Capital saw the potential to revitalize the struggling company and did just that," Buyouts Magazine wrote.
Founded in 1971, Cannondale was a highly innovative and respected brand that had fallen on hard times. Despite revenues of $156 million in 2002, the company lost $15 million that year and was close to shutting its doors.
"We were not deterred by the difficulties that Cannondale was facing," said Craig Cogut, Co-Managing Partner and the founder of Pegasus. "We saw the company's inherent value -- its brand, its outstanding products and its full potential -- and we were confident that we could return Cannondale to preeminence."
After acquiring Cannondale in bankruptcy proceedings in 2003, Pegasus focused resources on greater R&D, shed the unprofitable motorsports division, brought in new management, and ultimately added Sugoi Apparel as an add-on acquisition. In 2007, NBA superstar LeBron James, a loyal Cannondale customer, became a minority investor.
Under Pegasus' leadership, Cannondale revenues grew by 30% to $200 million and the company went from operating losses to EBITDA of approximately $20 million. In early 2008, Cannondale was sold to Dorel Industries, a publicly-listed Canadian company, for what Buyouts Magazine called a "stellar return."
About Pegasus Capital Advisors:
Pegasus Capital Advisors, L.P. is a private equity fund manager that provides creative capital and strategic solutions to middle market companies across a wide variety of industries. It is currently pursuing initiatives in several key emerging sectors, including alternative energy, all-natural human and pet foods, alternative building materials, LED lighting, homeland security and sustainable business solutions in a number of industries.
Established in 1995, Pegasus has cumulatively managed approximately $2 billion in assets through several private equity funds and has made more than 65 investments. The firm employs over 40 investment and advisory professionals and has offices in Cos Cob, CT, New York City and Santa Monica, California.
Source: Pegasus Capital Advisors
CONTACT: David McNamee of MWW Group, +1-646-215-6898, dmcnamee@mww.com,
for Pegasus Capital Advisors.
Keep up the great work by encouraging the children to ride their bikes. I know so many parents drive their children to and from school because of safety concerns.Mabe an adult supervised one day 1 hr. bike ride thru a local park, that will encourage the children and allow them to exercise the same time! Lots of luck ( Keep The Children Healthy) and away from T/V and silly P/C games.
Rob Byrd
Posted by: rob | 04/06/2009 at 12:00 AM