Cannondale Bicycle Exit Named Turnaround Deal of the Year

The purchase and sale of Cannondale Bicycle, a maker of lightweight aluminum bicycles, by Pegasus Capital Advisors was named the 2008 Turnaround Deal of the Year by Buyouts Magazine. In 2002, after Cannondale had posted eleven consecutive unprofitable quarters, Pegasus invested in senior notes issued by Cannondale prior to its Chapter 11 filing and ultimately became the stalking horse bidder in its Section 363 sale. Pegasus quickly eliminated an unprofitable business, and later acquired a complementary apparel business. After owning Cannondale for only four years and ten months, Pegasus sold the company to Dorel Industries, a publicly listed Montreal based company with operations in the stroller, car seat and furniture business, for a purchase price that represented a 10X EBITDA multiple. Morrison Cohen represented Pegasus on this transaction. The Morrison Cohen team included Henry Zangara, Karim Momin and Jordan Gaspar.