Mavic buys Enve
  • Mark Blackwell

    “Infusion of cash”? Mavic may choose to put some cash into Enve to accelerate its growth or something similar, but the $50m will go to the former owners of Enve (who I must say have done an amazing job with both the brand and the product).

    • Max

      This was a very confusing article. Need somebody who understands M&A better, not just marketing.

      • George

        Yup. Two M&A articles in a week and both misses when it comes to actually talking about the co’s. The Wiggle/CRC piece was much better than this though

        • Please keep in mind that these articles need to be written for an audience who aren’t M&A specialists or enthusiasts. Feel free to add your input if that’s your area of expertise. We’d love that insight in the comments.

          • Tim Ashton

            I dont even know what M & A means.

            But I thought the article was good and it clearly explained everything to me.

            • Ryan

              Merger & Acquisitions I think

          • Ugh

            I don’t know much about mergers or acquisitions but it raised an eyebrow when you said the $50 mil was a cash injection into the company.

            I do question why you bother covering industry movements if you’re not going to do it properly.

            • The same could be said about every single topic we cover. It would never end.

          • Dave

            Wade, perhaps you should consider finding an experienced business analyst (even a reporter?) who would be good for a quick phone interview when you’re doing stories on this sort of stuff.

            If in doubt, ask an expert!

      • James Huang

        I’ll freely admit to not being terribly well versed in business matters, which is why I tried to concentrate on what this deal might potentially mean in terms of products from either company moving forward. Frankly, I couldn’t care less what happens to the money if the end consumer doesn’t ultimately see any of the effects.

        What happens to the two companies’ respective product lines is far more interesting in my opinion.

        • A

          The affect on product line will be influenced by the details of the aquisition.

        • david__g

          Here’s a tip: If you write something and people call it out as incorrect, don’t go on the defensive with the classic “Actually I don’t even care!” line. It’s not a great look for someone claiming to be a journalist.

          • James Huang

            I’m not trying to be defensive at all! As I said, I freely admit to not being well versed in business matters so if there’s no likelihood that any of that US$50m will go anywhere aside from the former owners, I’m happy to correct my mistake.

            • Oldan Slo

              Stick with “The new company will be vertically compliant yet laterally stiff for razor sharp handling and all day comfort.”

              • Oldan Slo

                4.5 stars!

              • James Huang

                You forgot to mention the ‘bold new graphics’.

                • john

                  The suggestion that Mavic should concentrate on aluminium as it’s core business and back away from premium carbon is crazy. First, their traditional strength is aluminium because for over 100 of the last 127 years of it’s history aluminium is what almost all wheels were made of. Since carbon has come along, Mavic has done carbon really well. The CCU was a standard setter to rank alongside Lightweights, their track disc and trispokes are dominant to the point of being ubiquitous in that sport and their current road carbon brake tracks test brilliantly, with a new generation on the way. The only thing they’ve lagged behind on (by choice) has been rim widths and HED/Firecrest type profiles, and that’s about to change. Third, if Mavic back away from high end innovation their mid range sales will shrivel and die. High end racing visibility drives mid range sales.

    • david__g

      It’s like me selling my car and then using that money to make it better for the new owner.

  • Arfy

    You can’t have a product roadmap that has no continuity in its product range, or that has two overlapping product lines. There needs to be some sensible transition from a full aluminium to a full carbon wheel, and from low-cost to high-cost products. This is where mergers of product lines is tricky to manage, and perhaps will change over time, but it’s always to dangerous to hear marketing talking about “the two brands are going to act basically autonomous” because that’s never the long-term reality.

  • Stephen J Schilling

    Mavic’s problem was it’s insistence that shops sell it’s wheels with it’s tires.

    • hornk

      Yeah the number of fawning velonews articles when Mavic launched yet another tyre-wheel “system” was a bit hard to believe. Mavic make good but overpriced wheels, and mediocre tyres. So what did they do? Forced their weaker product onto consumers of their stronger product and charged a premium for it. Brilliant marketing guys.

  • Holby City

    So they’ve been wheeling and dealing.

    • Melissarmurphy

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    • Bonniewperez3

      ?my .friend’s mate Is getting 98$. HOURLY. on the internet.”….two days ago new McLaren. F1 bought after earning 18,512$,,,this was my previous month’s paycheck ,and-a little over, 17k$ Last month ..3-5 h/r of work a days ..with extra open doors & weekly. paychecks.. it’s realy the easiest work I have ever Do.. I Joined This 7 months ago and now making over 87$, p/h.Learn. More right Here!!b489????? http://GlobalSuperEmploymentVacanciesReportsRain/GetPaid/98$hourly…. .?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:?2:::::!!b489….

  • Andrew

    Innovative company being being purchased by a slow moving sloth…… not good. Might have to treat my 1.45’s with kid gloves

  • Simon

    Maybe it will mean they use Enve as neutral support? Riders will mysteriously develop punctures within 5km of a stage starting so they can get neutral support wheels.

    • James Huang

      In that case, I think it’s time I sign up for a few races :)

  • Simon

    Maybe it will mean they use Enve as neutral support? Riders will mysteriously develop punctures within 5km of a stage starting so they can get neutral support wheels.

  • Teezo

    Mavic certainly are an interesting company. Anyone who has used a mavic UST wheel can usually measure their last puncture date as being “years ago” but somehow their tech was never broadly accepted by the road market. Any clue why this is?

    Agree with Mr Huang. They may not offer the widest, the lightest, etc, but Mavic ride quality is unquestionably excellent in my opinion.

    • MadBlack

      If you’re not getting punctures on the UST wheels you’re not riding hard enough.

  • Larry @CycleItalia

    ENVE recently recalled a made-in-Vietnam (“Hand made in USA?”) plastic fork that sold for over $500 US. MAVIC’s owners probably figured they wanted to get in on that kind of profit margin!!! The ENVE folks must be laughing all the way to the bank?

  • smw

    Enve are overhyped wheels – as a wheel repairer.. two labels that continually come into my door to get fixed are the “E” and “Z”label – i don’t really know why Mavic bought this company – I’m guessing to cash in on its Enve’s brand of being “premium” – a turn over of 30m is hardly i dint in the bicycle industry.

    • Andrew

      I have been riding a set of 1.45 Tubbies for the last 6 years . At 95kgs I will stress a wheel I believe and in that time I have only had one broken spoke. Most comfortable durable wheel I have ridden in the last 15 years

      • YRA

        Hooray for anecdotes! Forming trendlines with one data point since forever.

    • Hyun-ji Song

      I own enves. I don’t really want to try any other wheels ever anymore.

  • Winky

    Mavic’s Exolith rim treatment is just incredible in terms of braking performance and durability. A much bigger step than the move to tubeless IMO. I have had a couple of sets of other Mavic wheelsets and have nothing to complain about. I have no personal experience with Enve, but was on a ride with a dude who couldn’t pump his tyres up above about 70 because they would just blow off his Enves. They seemed a ridiculously loose fit when I helped him repair one of his blowouts. I have no idea why he persevered. A deal-breaker for me.

    • david__g

      Because he’d probably dropped 3K+ on them. At that point you’ll convince yourself anything is decent.

  • LeMuffin

    I think it’s unfair to compare Amer (the parent company not, Mavic) with Trek. I think the better indication how separate Mavic and Enve will remain can be done by assessing how Atomic and Salomon are being managed. Both make skis, and yet they have separate brands and R&D, but share manufacturing. http://www.caldwellsport.com/2011/08/salomon-visit/

    • winkybiker

      Yep, and Arcteryx don’t really seem to have suffered as a brand since being bought out by them. Still good stuff, and well respected.

      • LeMuffin

        Agree, but Arc’teryx was bought out by Salomon Group when they were owned by Adidas-Salomon in 2001. Then Salomon Group was sold by Adidas-Salomon to Amer in 2005.

        • winkybiker

          Thanks. Didn’t realise it had been a 2-stage process to where they are now.

  • Keir

    I think the days of Mavic being an alloy rim benchmark are pretty well gone. There might be a few holding out on the Open Pro but they’re nothing special anymore compared to many other alloy offerings like the HED Belgium.

    • James Huang

      Mavic’s core problem has never been with its engineering or philosophy. Its main problem has been an inability to adapt to the changing landscape in terms of what riders actually want.

      I’ve spent quite a bit of time on Mavic’s latest Allroad wheels, which aren’t especially light but are so far proving to be very tough, extremely stiff, and with excellent build quality.

      If Mavic can figure out how to apply its knowledge to a product range that better takes modern developments into account, I don’t see any reason why they can’t be dominant once again.

  • OverIt

    Apart from the obvious ($$$$$$$$$$$$$$$$$$$$$) I want to know/understand why ENVE sold out at all?

    The company seemed profitable, was growing, etc. So why just sell it off and throw the workforce into worry over their future under the merger. Are the owners getting out of cycling all together? Or are they going to re-start a new brand with the cash and start building wheels under a new name and screw all their old staff over, (well the ones that don’t get re-hired) and Mavic in the future.?

    I think it’s a shame that companies do this. It looks like $$$greed$$$ on the surface, when really with ENVE doing well, they could have easily lived off the profits and appointed a manager to keep things running smoothly with minimal interjection from the founders.

    I think the article should have delved into this aspect.

    • H.E. Pennypacker

      Capitalism’s a bitch.

    • jules

      lots of companies start off small and develop a niche, become successful in that niche to the point where demand grows enough that they need to be big. running a big company is different than running a niche one – even if you are making exactly the same products. there are lots of examples of companies that grow out of control and fail. it often makes sense to sell out to someone who knows how to run a bigger company. partly because of the money you make from the sale, yes.

    • Jordan Hukee

      I suspect that Enve has long been interested in bigger distribution in more markets (europe?). If they can take advantage of Mavic’s sales channels and support network it would be extremely valuable for them and would help ensure continued growth (security for employees!?!?) And also I think many of these responses are assuming a lot considering Mavic didn’t purchase anybody, it was Amer Sports. Sure there are lots of examples of buying companies and merging them, but there are also instances of a parent-company buying two companies and changing very little. Time will tell, I guess.

  • Pedro Rocha

    I think that if things are done well, the Mavic can provide hubs and spokes for ENVE (Lowering costs, and perhaps the final price), but Enve keeping the same their own hubs made out of carbon, and possibly would not be surprised to, keeping also the option of ChrisKing, and it is a very brand associated with the Enve, and that is not so big and such a direct competitor of Mavic, ENVE will also benefit from a giant sales network. In turn the ENVE could bring carbon from Mavic to the age of the future, and help to produce more aerodynamic wheels.

    Both can benefit greatly in the OEM can provide a pack for example with Mavic Crossmax SL and handle bar, stem and seatpost ENVE.

    the possibilities are immense without distorting brands, so hopefully things to happen ….

  • Sean Doyle

    It could also be that the owners at Enve see it as a good time to pursue other activities and Amer see a company still making good money and an opportunity to add to their stock value.

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