Louis Garneau acquires Sugoi to expand cycling apparel empire
What's the deal? Louis Garneau Sports (LGS)Dealroom has a profile for this one. Try Dealroom → has acquired SugoiDealroom has a profile for this one. Try Dealroom →, a cycling, triathlon, and running apparel brand owned by publicly traded Dorel IndustriesDealroom has a profile for this one. Try Dealroom → (TSX: DII.B, DII.A). The deal also brings SombrioDealroom has a profile for this one. Try Dealroom →, a mountain bike apparel label under the Sugoi umbrella, into the Garneau family of brands.
Who's who? Sugoi was founded in 1987 by two Vancouver entrepreneurs and is now present in over 3,000 retailers. Sombrio, more than 15 years old, draws its designs from Vancouver's North Shore. LGS, founded 35 years ago by cyclist Louis Garneau, is based in Saint-Augustin-de-Desmaures, Quebec.
Why now? The acquisition coincides with LGS's 35th anniversary and a generational handover. Garneau's three children — William, 28, general manager; Edouard, 25, sales director; and Victoria, 21, a recent fashion design graduate — are reshaping the company's business model.
What's the endgame? Garneau wants to build a ready-to-wear bike apparel segment aimed at everyday cyclists, not just professionals. "We want to become the leader by introducing a ready-to-wear bike apparel segment for people who practice active transportation," Louis Garneau said, describing the ambition to "be the world's cycling solution with our brand portfolio."
What changes? LGS will keep sales, marketing, and product design for Sugoi and Sombrio in Vancouver to preserve their West Coast identity. The rest of operations will move to the Quebec head office, where roughly 10 new jobs will be created.
What's next? The company plans an official launch of its three brands at the Eurobike International Bike Trade Show in Germany, held July 8-10, 2018. Garneau said the deal would help the group "rapidly increase its sales and become a world leader in cycling apparel."
The signal: The acquisition reflects a bet that cycling is shifting from a sport into a lifestyle, with apparel spanning racing, mountain biking, and daily commuting. For LGS, absorbing an established West Coast brand offers a foothold in North America and a springboard toward Western Europe and Asia.
Image credit: Richard Masoner / Cyclelicious
