Lehman Brothers Merchant Banking, one of the investment funds of Lehman Brothers, has acquired a minority stake in this large international supplier of bicycle components, whose revenues will approach $500 million this year. SRAM said it had sought a strategic financial investor to support its continued growth in the global bicycle components industry.
The senior management of SRAM, based in Chicago, will remain in its place under Stan Day, chief executive. However, Martin van Beek will leave as general manager of SRAM Europe, which he helped to set up in Amersfoot, Netherlands, in 1993. Patrick Brandwigt will assume general management responsibility for the European operation, aided by Robert Priest as director of sales.
SRAM has also announced the establishment of a SRAM Cycling Advocacy Fund. With initial capital of $10 million, it plans to support policy issues on the cycling infrastructure and the bicycle industry in general in the USA, Europe and Asia.
SRAM has product development and manufacturing facilities in California, Colorado, Indiana, Taiwan, China, Germany and Portugal. Having grown largely through acquisitions, including the former Fichtel & Sachs, it also owns RockShox and other brands of cycling products.