|This article needs additional citations for verification. (December 2007)|
|Headquarters||Chicago, Illinois, USA|
|Stanley R. Day Jr. (CEO)|
|Products||Bicycle and related components|
Number of employees
SRAM Corporation is a privately held bicycle component manufacturer based in Chicago, Illinois, USA, founded in 1987. SRAM is an acronym comprising the names of its founders, Scott, Ray, and Sam, (where Ray is the middle name of company head Stan Day).
The company grew organically and through acquisitions, and by the end of the 00s had become one of the largest high-end cycling component brands in the world, selling under the brands SRAM, Avid, and RockShox, among others. Their components are manufactured primarily inhouse, in factories located in Asian countries, and distributed and sold as OEM equipment and retail in high-end markets globally.
In 2008, the company received a strategic investment from Trilantic Capital Partners, formerly known as Lehman Brothers Merchant Banking, the buyout arm of Lehman Brothers. The firm invested $234.8 million in SRAM in a deal that closed Sept. 30, 2008. On May 12, 2011, the company announced in a filing that it intended to raise up to $300 million in an IPO. Shortly later, the company consolidated its debt to pay off the assets owned by the private equity firm.
In 1990 the company sued Shimano for unfair business practices, noting that Shimano offered, in effect, a 15-percent discount to bicycle manufacturers specifying an all-Shimano drivetrain and that few companies in the highly competitive industry would be willing to forgo such a discount to specify Grip Shift components. SRAM received an unspecified out-of-court settlement from Shimano in 1991. More importantly, it won the right to compete in the lucrative OEM bicycle components arena.
The years after the Shimano settlement were marked by dramatic growth for the company, as it increased sales greatly and added other companies to its portfolio. SRAM is an example of a recent trend within the high-end cycle-component segment of the bicycle industry, where companies seek a position as a "one-stop shopping center" for bicycle frame manufacturers/bicycle brand owners, supplying all or most of parts needed to complete the bike. SRAM now incorporates the former bicycle division of Fichtel and Sachs, Sachs-Huret, and recently acquired component makers RockShox, Avid, Truvativ, Zipp, and QUARQ (see below).
SRAM has purchased a number of companies to allow it to offer a full set of components rather than develop them from scratch. At the forefront of the company is the SRAM marque which is used for most of its groupsets. Companies SRAM has purchased and converted into marque brands include Rockshox, Truvativ, Sachs, Avid and Zipp.
SRAM currently has 7 road bike groupsets (in descending order of price/quality) that all use the SRAM Exact Actuation™ ratio:
- SRAM Red 22
- SRAM Force 22
- SRAM Rival 22
- SRAM Red 2012
- SRAM Red - Black Edition
- SRAM Force
- SRAM Rival
- SRAM Apex (Introduced in 2010)
and 11 mountain bike groupset (each designed for specific mountain biking disciplines):
- X01 DH
Sachs Bicycle Components
In November 1997 SRAM acquired Sachs Bicycle Components, including a significant hub gear production line, from Mannesmann Sachs AG, a unit of German telecommunications group Mannesmann AG. Sachs had 1,250 employees and annual revenues of more than $125 million. A new state-of-the-art factory was constructed in Schweinfurt, bringing development and production facilities under one roof. SRAM invested over $1 million (USD) in new engineering and development resources. The remainder of the Sachs company (ZF Sachs) is now owned by ZF Friedrichshafen AG. ZF Sachs mainly deals in parts for motorised vehicles.
SRAM purchased RockShox on February 19, 2002. They were one of the first companies to introduce a bicycle suspension fork for consumer use. Marketing and sales departments were relocated to Chicago, while product development remained in Colorado Springs. A SRAM factory in Taichung, Taiwan was converted to RockShox production after the acquisition. RockShox is responsible for producing bicycle suspension products (both spring and air) including front suspension forks for both mountain biking (MTB) and pavement usage, rear suspension, suspension lockout remotes, maintenance products and a height adjustable seatpost.
On March 1, 2004 SRAM purchased Avid, a well-known designer and manufacturer of bicycle brake components. Its current line-up includes hydraulic disc brakes, mechanical disc brakes, rim brakes, levers, cables and maintenance products for a range of uses including MTB and cyclocross. They also produce two road bike disc brakes. As with RockShox, Avid's product development continued in Colorado Springs while marketing and sales divisions were moved to Chicago.
SRAM purchased Truvativ in 2005, providing SRAM with a line of cranks, bottom brackets, handlebars, stems, pedals, seatposts and chain retention systems. This allowed SRAM to offer a complete drivetrain with the first SRAM branded road groupsets being released the following year.
On November 6, 2007 SRAM acquired Zipp Speed Weaponry, a company designing and manufacturing high-end carbon wheelsets for use on road racing bicycles, as well as other high-end components such as cranksets, handlebars, stems and wheels.
In 2011 the company announced the intention to go public, but those plans were put on hold due to volatility in the stock market. SRAM reported net sales of $524.1 million in 2010, and has grown at a rate of about 16 percent annually in the four years prior to 2010. The company has estimated that it holds about 15 percent of the $3.5 billion bicycle components market.
- Sales 1987 $0 million
- Sales 1994 $25 million
- Sales 1995 $40 million
- Sales 1999 $120 million
- Sales 2001 $120 million
- Sales 2003 $150 million
- Sales 2004 $160 million (estimate)
- Sales 2006 $283.8 million
- Sales 2007 $356.0 million
- Sales 2008 $478.4 million
- Sales 2009 $399.6 million
- Sales 2010 $524.2 million
- World Bicycle Relief, sponsored by SRAM
- About SRAM
- http://www.findarticles.com/p/articles/mi_qn4155/is_20000727/ai_n13875164. Missing or empty
- Will SRAM's Deal With Lehman Brothers Stick?
- "UPDATE 1-SRAM International files for IPO of upto $300 mln". Reuters. 12 May 2011. Retrieved 2011-05-12.
- Sram International Corp S-1 Filing (IPO Registration)
- http://www.fundinguniverse.com/company-histories/SRAM-Corporation-Company-History.html SRAM-Corporation-Company-History
- SRAM | News and Events | News
- Stanford business case: SHIMANO AND THE HIGH-END ROAD BIKE INDUSTRY, CASE:SM-150 DATE: 01/27/06
- SRAM Corporation - Company History
- Chicago Athlete - Feature Article
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