Garneau Acquires Sugoi & Sombrio
PRESS RELEASE: Louis Garneau Sports
On our 35th Anniversary, we are celebrating by making a strategic acquisition. Indeed, SUGOI, a cyclewear apparel line of publicly traded Dorel Industries (TSX: DII.B: DII:A), owners of Dorel Sports, is now part of the Garneau family of brands.
SUGOI, founded in 1987 by two Vancouver entrepreneurs, specializes in cycling, triathlon and running apparel. It is also home to Sombrio®, a mountain bike apparel brand well-known among fans of this sport. Sombrio has been in existence for over 15 years, with designs inspired by Vancouver’s North Shore.
Louis Garneau Sports thus realizes a strategic acquisition that will reinforce its positioning on the West Coast of both Canada and the USA and provide strategic opportunities for growth in Western Europe and Asia. SUGOI is currently present in over 3,000 retailers and has always been based on innovation and quality, just like Sombrio.
“This acquisition will enable Garneau Group to rapidly increase its sales and become a world leader in cycling apparel,” declares the President and Founder of LGS, Louis Garneau. “We will proceed with the official launch at the Eurobike International Bike Trade Show, which will be held in Germany July 8-10, 2018. We will present our 3 brands and put forth the Canadian spirit and the strength of our innovations.”
With the arrival of the second generation of Garneau’s in the company, LGS is undergoing a transformation and regeneration of its business model. William, 28, is General Manager of the company while Edouard, 25, is Sales Director. The youngest, Victoria, 21, has just finished her studies in Fashion Design and will soon be joining her brothers full-time in the family company. This completes the Dream Team, reinventing itself with the help of the world-class communications firm Cossette and supported by Garneau’s proven management team.
“We are reinventing ourselves because cycling is not only about the professionals, it is also a lifestyle. We will be touching many categories of cycling through apparel. We want to become the leader by introducing a ready-to-wear bike apparel segment for people who practice active transportation, making biking accessible and fun for everyone and, in doing so, create a cycling lifestyle. We want to be the world’s cycling solution with our brand portfolio,” Louis Garneau explains.
“This is my legacy to my three children… this Never Give Up philosophy that is my motto, and which is demonstrated through this acquisition,” the Saint-Augustin-de-Desmaures businessman states.
Louis Garneau Sports will keep Sales & Marketing operations for SUGOI and Sombrio in Vancouver, as well as product design, to keep the spirit of the Canadian West Coast alive. The rest of the activities will be transferred to the LGS head office in Saint-Augustin-de-Desmaures, Quebec, where approximately 10 new jobs will be created.
The Garneau family is very proud of this acquisition, especially in the context of William, Edouard and Victoria working to bring the company to the next level and, why not, do better than Dad!
ABOUT GARNEAU
Founded in 1983, the Louis Garneau Group has its head office in Saint-Augustin-de-Desmaures, Quebec, and employs over 450 people. The company also operates a distribution center in Derby, Vermont, since 1987, a factory in Mexico started 10 years ago, as well as a procurement and sourcing office in China. Garneau products are sold in over 50 countries.
Garneau relentlessly concentrates its energies on development and innovation. More than ever, athletes the world over stand out and perform thanks to the latest innovations of the Garneau brand.
http://garneau.com/us/en/
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They've issued it to a consumer-facing news site, but it's written in investor-ese and seems more interested in phrases like'strategic acquisition', 'active transportation' and 'brand portfolio'. Do you really think that this is the language which will resonate with your customers? Does it tell them anything that will make them happy about the change? Where is the reassurance that fans of current lines, who are after all your consumers, will keep getting what they've come to love? Where's the emotional outreach and connection?
Really, if you're going to do a press release, at least have two versions - one for the investment journal and one for the people who actually buy and love your stuff. This is just alienating.
I'm singling out LG unfairly here, as this kind of marketing speak is becoming universal. And people wonder why the comments seem disillusioned and often focus on a lack of user understanding or prioritisation (the 'standards' conversation is part of the same marketing misstep). It's just a little hint that the people making decisions aren't remembering how they've got there.
This company struggled for years to get any sort of credibility-without success... now it is turning into a trust fund / silver spoon project.
I buy stuff from companies owned by people who ride bikes.
When I saw the link about this "press release" I thought maybe it was a joke. True, it is in a lot of ways - or something perfect for bicycleretailer. Hope PB cashes the check they rec'd to write it/run it sooner than later.
To be honest I do not understand the statement "We want to become the leader by introducing a ready-to-wear bike apparel segment for people who practice active transportation, making biking accessible and fun for everyone and, in doing so, create a cycling lifestyle." ???
My clothes are always ready-to-wear. Apart from washing them from time to time. But I don´t have to charge them or put them togehter somehow.
Didn´t know also that clothes are "making biking accessible and fun for everyone".
Other than that, I agree with most of what you said.
I've worked for Garneau in 2016 and then I went to work for a sporting goods store. I now work in an office as a building drafter.
I have sold Garneau, Sugoi, Pearl Izumi, Craft and other cycling brands. Garneau is by far the best quality products I have sold and owned myself (the bibs are incredible)!
What people don't usually know is that the gear is almost all made at the factory in Québec (where the headquarter is) and at the Vermont factory. It is a family owned business that wants to give job local people and Louis himself is riding every saturday morning with the Garneau Cycling Club.
Garneau is providing the Canadian Olympic Team kits as well as pretty much all the cycling clubs kits in Québec (great customization possibilities and customer service). The brand also sponsored the 2010-2011 Europcar now Direct Energie World Tour Team.
The Garneau mountain bike line was not their strong suit so I actually think they might take advice from the people at Sombrio and just throw in some of their technologies in.
William who as taken over is father is a very intelligent young man. They announced earlier this year that they would inject 2.6$ millions to be up to date and consolidate their presence on the web.
In the end, I returned working for Garneau two times a week, after the office, because it feels like a big family.
Clothing company acquires other clothing companies. All that means is less selection on options for us the consumer.
It's a little wack, Cannondale used to have a pretty good line up of road clothing, that disappeared when Dorel bought Sugoi. Now Garnea and Sugoi are the same company, one brand will prevail, Garneau and Sugoi, have never been able to make a mark in the AM;/FR market (which is where Sobrio is). So when they decide to eliminate Sombrio as a brand (we can't make any money there), we will be more limited in options to buy products we like.
END OF RANT
Consolidation is good for "the MAN", but not for the people.
Close out socks) so this really doesn't interest me all that much.