Netherlands firm nears acquisition of the Toronto bike frame manufacturer

Pon poised to purchase Cervelo

Shortly before Christmas, bike frame brand Cervélo entered into a financing arrangement with Pon Holdings BV.

Cervelo and Pon have both signed a Letter of Intent that enables both parties to agree on a sale of Cervélo in exclusivity.

Established over 100 years ago, the Netherlands-based Pon is a family-run global trading and service company, employing over 11,000 staff in 12 countries. The company recently bought bicycle maker Gazelle and the majority of shares in Derby Cycle.

Cervelo said in a statement on its site: "Thanks to everybody who commented on our message that we’re contemplating a sale of the company. To answer some of your questions, here is a bit of background. Cervélo has experienced exceptional growth and success since we started 16 years ago. A potential sale of the company allows us to continue to grow Cervélo without changing any of the things that make it special.

"Cervélo will continue to be based in Toronto, with the same team of people, with the same desire to engineer the best bikes on the planet. It will stand by old products and create exciting new ones, starting with the new P5 which will be launched next month. Stay tuned."

In other news...

Construction work to begin soon on new cycle route between Finsbury Park and Holloway Road

Transport for London (TfL) has confirmed that construction work will begin on a new cycle route between …