Canyon is for sale

[b33]

The cost to acquire a customer for Canyon is surely less than Trek or Specilaized and those two companies have a dealer network that each year is growing tired of them.

Casper is a bit unique in that there was the Direct to Consumer Mattress wars which involved buying review sites and then creating review sites and all that.

Canyon is, in my view, one of the best brands to invest in. Trek and Specialized have to decide to go all in or not. Canyon knows where they are and who they are.

bike deals - Cannondale horrible - Pinarello good - Colnago yet to be seen.

Originally Posted by Eli Bingham

They're a private company, so there aren't publicly disclosed financials, but given their heavy marketing expenses, I'm guessing that their CACs are quite high, relative to other business models. DTC businesses are notorious for cash burn in this manner - see Casper Mattresses financial statements for a good example.

Combine these high CACs with their generous equipment specs and suspiciously low prices, and I'd be surprised if they generate much of any free cash flow, after netting for the CACs. Usually DTC companies make the argument that they don't have to pay the CAC on repeat sales, but for most normal people, n=1.

[Velocipede]

Originally Posted by Mark McM

Trek used to make their top-end frames in-house (such as the Madone and the Emonda), but they've shifted manufacturing to Asia over the last few years. They used to say that their OCLV frames were only ever made in-house, but they no longer say that - because OCLV frames are now made in Taiwan (and maybe else where). It's not clear to me that they make any carbon frames in the US anymore. For example, my 2019 Emonda SLR frame (OCLV) has a sticker that says "Made in Taiwan".

I figured they were all made overseas. I personally don't care. I don't own a Trek and haven't in years. I don't fault them for going overseas with everything. I just thought based on what I was told only the Project Ones were still made in the US.

Asia has excellent carbon manufacturing. IF it's done right and they do real QC. Many times it's done on the cheap and that includes the QC part of it. That being said, the US, Italy, Europe, they all have issues if they allow it. A perfect example of that is the Ancotech fraud that happened. Ruined an amazing company.

[Velocipede]

Canyon is sold!

https://www.bike-eu.com/market/nieuw...-qVMZhrcdDvwfU

[oldpotatoe]

Originally Posted by Velocipede

Canyon is sold!

https://www.bike-eu.com/market/nieuw...-qVMZhrcdDvwfU

Is it really 'sold' tho? Seems Roman will be staying(as advisor) and it says he's throwing a chunk of his 'proceeds' toward Canyon..so is he still considered an 'owner'?? Or just an 'investor' now?

Roman Arnold will remain the Chairman of the Advisory Board and reinvest a significant part of his proceeds alongside GBL

[batman1425]

Originally Posted by Velocipede

I figured they were all made overseas. I personally don't care. I don't own a Trek and haven't in years. I don't fault them for going overseas with everything. I just thought based on what I was told only the Project Ones were still made in the US.

Asia has excellent carbon manufacturing. IF it's done right and they do real QC. Many times it's done on the cheap and that includes the QC part of it. That being said, the US, Italy, Europe, they all have issues if they allow it. A perfect example of that is the Ancotech fraud that happened. Ruined an amazing company.

US based construction of frames (from carbon up) stopped around 2017 and now all Trek carbon frames are manufactured overseas. Most stock bikes are finished and assembled abroad as well.

Project One and some of the SLR series frames land in the US unpainted/finished and they are completed and assembled in Waterloo, but that's the extent of US based involvement.

[dbnm]

as said above
https://www.velonews.com/news/canyon...elles-lambert/

[verticaldoug]

TSG Consumer Group which is a San Fran based Private Equity firm invested in the company in 2016 and wanted out.

The Belgium group GBL bought the TSG stake with another investor. Roman still holds 40% of the company.