Regent has been making its rounds on sporting news sites since the beginning of the year when the company first purchased French track, MTB stalwart, Mavic. The company has proven successful in this investment already, proving that there is some mileage for the company. With this recent purchase, it won’t be long until Regent becomes one of the most recognized labels in the industry.
The sale went through in August and had the price tag of $1 dollar and no, we didn’t forget any digits here. This is what has been turning heads who hear of the sale and cannot believe the sale took place for one dollar. There is a clause in the sale that there is ‘potential to earn-out’ of up to $15 million dollars.
The deal has been tailored to benefit both companies. In essence, it gives the original owner, Accell quick dedication to the sale of the business and 3 brands while Regent is granted the opportunity to purchase these already built assets at almost no cost as an investment opportunity. The reason for the incredibly low sale price tag attached to the deal was because Accell wanted to secure the deal with no time wasted. You see, the brand was losing millions fast due to profit dilution and through the intervention of Regent; the loss of more than over $12 million dollars came to an abrupt halt the day the deal was signed, sealed and delivered.
The deal shook many who heard of the ‘abrupt’ sale while there were those who didn’t appear to be quite shocked. What Regent chooses to do with the brands, including Redline, remains a mystery but judging from the companies increasing success it’s safe to assume whichever way they go, it might be the best thing for these brands.
History of Redline
The brand materialized in 1970 by two men with different fields of expertise and one common passion; motorcycles. Together they developed some of the most, motorcycle frames for flat roads, speedways and motocross tracks.
The men began with only 6 staff on board when they first started Redline and grew into one of the leading suppliers of BMX. The brand is hoped to remain as reliable and sturdy as it has been known to be in the past through this new turn of events.