| 06/19/2001 | Merida Purchases a Stake in SpecializedThe world's largest speciality MTB manufacturer Merida has purchased a minority stake in Specialized. An official statement from Specialized Bicycles Inc of Morgan Hill in California - until now wholly owned by founder Mike Sinyard - did not mention the size of the minority stake, nor was there any explicit mention of cash changing hands. Bicycle Business reports that Taiwanese insiders believe Merida has accepted a 30 percent stake.
Mike Sinyard founded Specialized in 1974 and was the sole owner until now. He said that he would "commit additional personal funds to enhance Specialized's leadership position". He will still retail full control of the compand as the major stockholder, president, and CEO.
The official statement from Specialized said:
"Additional investment was sought to strengthen the company and support its commitment to the IBD. Specifically, the investments will be used to enhance the service to the Independent Bicycle Dealer, increase investments in dedicated merchandising programs, expand sales efforts, support advocacy and the activity of cycling, invest and expand in Europe and, most important, bolster an already strong research and development budget."www.specialized.com
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