SRAM (bicycles)
Encyclopedia
SRAM Corporation is a privately held bicycle
component manufacturer based in Chicago, Illinois, founded in 1987. SRAM is an acronym comprising the names of its founders, Scott, Ray, and Sam, (where Ray is the middle name of company head Stan Day).
In 2008, the company received a strategic investment from Trilantic Capital Partners
, formerly known as Lehman Brothers Merchant Banking, the buyout arm of Lehman Brothers
. The firm invested $234.8 million in SRAM in a deal that closed Sept. 30, 2008. On May 12, 2011, the company announced in a filing that it intended to raise up to $300 million in an IPO
.
In 1990 the company sued Shimano
for unfair business practices, noting that Shimano offered, in effect, a 15-percent discount to bicycle manufacturers specifying an all-Shimano drivetrain
and that few companies in the highly competitive industry would be willing to forgo such a discount to specify Grip Shift components. SRAM received an unspecified out-of-court settlement from Shimano in 1991. More importantly, it won the right to compete in the lucrative OEM
bicycle components arena.
The years after the Shimano settlement were marked by dramatic growth for the company, as it increased sales exponentially and added other companies to its portfolio. SRAM is a good example of the recent trend within the high-end cycle-component segment of the bicycle industry, where companies seek a position as a "one-stop shopping center" for bicycle frame manufacturers/bicycle brand owners, supplying all or most of parts needed to complete the bike. SRAM now incorporates the former bicycle division of Fichtel and Sachs, Sachs-Huret, and recently acquired component makers RockShox, Avid, Truvativ, Zipp
, and QUARQ (see below).
s. Companies SRAM has purchased and converted into marque brands include Rockshox, Truvativ, Sachs, Avid and Zipp.
shifting technology:
and seven MTB groupsets:
, including a significant hub gear
production line, from Mannesmann Sachs AG, a unit of German telecommunications group Mannesmann AG. Sachs had 1,250 employees and annual revenues of more than $125 million. A new state-of-the-art factory was constructed in Schweinfurt
, bringing development and production facilities under one roof. SRAM invested over $1 million (USD) in new engineering and development resources. The remainder of the Sachs company (ZF Sachs
) is now owned by ZF Friedrichshafen AG
. ZF Sachs mainly deals in parts for motorised vehicles.
for consumer use. Marketing and sales departments were relocated to Chicago, while product development remained in Colorado Springs. A SRAM factory in Taichung
, Taiwan
was converted to RockShox production after the RockShox acquisition. RockShox is responsible for producing bicycle suspension
products (both spring and air) including rear suspension, front suspension forks (for both MTB and pavement usage), suspension lockout remotes, maintenance products and since 2009 the reverb, a height adjustable seatpost.
s, mechanical disc brakes, rim brakes, levers, cables and maintenance products for a range of uses including MTB and cyclocross. They also produce two road bike disc brakes. As with RockShox, Avid's product development continued in Colorado Springs while marketing and sales divisions were moved to Chicago.
s, bottom bracket
s, handlebars
, stems
, pedals
, seatpost
s and chain retention systems. This allowed SRAM to offer a complete drivetrain with the first SRAM branded road groupsets being released the following year.
, a company designing and manufacturing high-end carbon wheelsets for use on road-racers, as well as other components such as cranks, handlebars and disc wheels.
, 1st overall, 2008
Giro d'Italia
(SRAM's first Grand Tour
victory)
Riccardo Ricco
, 2nd overall, 2008 Giro d'Italia
Alberto Contador
, 1st overall, 2008
Vuelta a España
Nicole Cooke
, 1st, 2008
UCI Road World Championships
Alberto Contador
, 1st overall, 2009
Tour de France
Andy Schleck
, 2nd overall, 2009 Tour de France
Lance Armstrong
, 3rd overall, 2009 Tour de France
Fabian Cancellara
, 1st Individual Time Trial, 2009
UCI Road World Championships
Fabian Cancellara
, 1st, 2010
Paris–Roubaix
Alberto Contador
, 1st overall, 2010 Tour de France
Thor Hushovd
, 1st, 2010 World Road Race Champion, Melbourne - Geelong October 3, 2010
Bicycle
A bicycle, also known as a bike, pushbike or cycle, is a human-powered, pedal-driven, single-track vehicle, having two wheels attached to a frame, one behind the other. A person who rides a bicycle is called a cyclist, or bicyclist....
component manufacturer based in Chicago, Illinois, founded in 1987. SRAM is an acronym comprising the names of its founders, Scott, Ray, and Sam, (where Ray is the middle name of company head Stan Day).
In 2008, the company received a strategic investment from Trilantic Capital Partners
Trilantic Capital Partners
Trilantic Capital Partners is a private equity investment firm focused on leveraged buyout and growth capital investments in middle-market companies across a range of industries in the US and Europe. The firm was formerly known as Lehman Brothers Merchant Banking , the buyout arm of Lehman Brothers...
, formerly known as Lehman Brothers Merchant Banking, the buyout arm of Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
. The firm invested $234.8 million in SRAM in a deal that closed Sept. 30, 2008. On May 12, 2011, the company announced in a filing that it intended to raise up to $300 million in an IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
.
History
As a start-up company, SRAM introduced the Grip Shift (or twist shift) gear-change method and technology to the road bike market in 1988.In 1990 the company sued Shimano
Shimano
Shimano, Inc. is a Japanese multinational manufacturer of cycling components, fishing tackle, and rowing equipment.In 2005, the company had net sales of US $1.4 billion. Bicycle components provided 75% of its sales income...
for unfair business practices, noting that Shimano offered, in effect, a 15-percent discount to bicycle manufacturers specifying an all-Shimano drivetrain
Bicycle drivetrain systems
Bicycle drivetrain systems are used to transmit power on bicycles, tricycles, quadracycles, unicycles, or other human-powered vehicles from the riders to the drive wheels. Most also include some type of a mechanism to convert speed and torque via gear ratios....
and that few companies in the highly competitive industry would be willing to forgo such a discount to specify Grip Shift components. SRAM received an unspecified out-of-court settlement from Shimano in 1991. More importantly, it won the right to compete in the lucrative OEM
Original Equipment Manufacturer
An original equipment manufacturer, or OEM, manufactures products or components that are purchased by a company and retailed under that purchasing company's brand name. OEM refers to the company that originally manufactured the product. When referring to automotive parts, OEM designates a...
bicycle components arena.
The years after the Shimano settlement were marked by dramatic growth for the company, as it increased sales exponentially and added other companies to its portfolio. SRAM is a good example of the recent trend within the high-end cycle-component segment of the bicycle industry, where companies seek a position as a "one-stop shopping center" for bicycle frame manufacturers/bicycle brand owners, supplying all or most of parts needed to complete the bike. SRAM now incorporates the former bicycle division of Fichtel and Sachs, Sachs-Huret, and recently acquired component makers RockShox, Avid, Truvativ, Zipp
Zipp
Zipp is an American company that designs, makes and markets high-performance carbon-composite bicycle wheels for road cycling and triathlons. The company has expanded its product range to include handlebars, cranks and stems.- History :...
, and QUARQ (see below).
Brands
SRAM has purchased a number of companies to allow it to offer a full set of components rather than develop them from scratch. At the forefront of the company is the SRAM marque which is used for most of its groupsetGroupset
A groupset or gruppo is a bicycle component manufacturer's organized collection of mechanical parts...
s. Companies SRAM has purchased and converted into marque brands include Rockshox, Truvativ, Sachs, Avid and Zipp.
SRAM
SRAM currently has 4 road bike groupsets (in descending order of price/quality) that all use the SRAM Double TapSRAM Double Tap
SRAM Double Tap is an integrated gearshift and brake lever system designed by SRAM Corporation for racing bicycles. It allows shifting gears without having to remove a hand from the bars, unlike previous down tube shifting systems. It was launched in late 2005 to compete with Shimano Total...
shifting technology:
- SRAM Red
- SRAM Force
- SRAM Rival
- SRAM Apex (new for 2010)
and seven MTB groupsets:
- XX
- X.0
- X.9
- X.7
- X.5
- X.4
- X.3
Sachs Bicycle Components
In November 1997 SRAM acquired Sachs Bicycle ComponentsZF Sachs
ZF Sachs AG is a German manufacturer of automotive parts, producing powertrain and suspension components. It was formerly known as Fichtel & Sachs, Mannesmann Sachs and Sachs...
, including a significant hub gear
Hub gear
A hub gear, internal-gear hub, or just gear hub is a gear ratio changing system commonly used on bicycles that is implemented with planetary or epicyclic gears. The gears and lubricants are sealed within the hub-shell of the bicycle's rear wheel, as opposed to derailleur gears, where the gears and...
production line, from Mannesmann Sachs AG, a unit of German telecommunications group Mannesmann AG. Sachs had 1,250 employees and annual revenues of more than $125 million. A new state-of-the-art factory was constructed in Schweinfurt
Schweinfurt
Schweinfurt is a city in the Lower Franconia region of Bavaria in Germany on the right bank of the canalized Main, which is here spanned by several bridges, 27 km northeast of Würzburg.- History :...
, bringing development and production facilities under one roof. SRAM invested over $1 million (USD) in new engineering and development resources. The remainder of the Sachs company (ZF Sachs
ZF Sachs
ZF Sachs AG is a German manufacturer of automotive parts, producing powertrain and suspension components. It was formerly known as Fichtel & Sachs, Mannesmann Sachs and Sachs...
) is now owned by ZF Friedrichshafen AG
ZF Friedrichshafen
ZF Friedrichshafen AG, also known as ZF Group, and commonly abbreviated to ZF, is a German public company headquartered in Friedrichshafen, in the south-west German region of Baden-Württemberg....
. ZF Sachs mainly deals in parts for motorised vehicles.
RockShox
RockShox, purchased by SRAM on February 19, 2002, was one of the first companies to introduce a bicycle suspension forkBicycle fork
A bicycle fork is the portion of a bicycle that holds the front wheel and allows the rider to steer and balance the bicycle. A fork consists of two fork ends which hold the front wheel axle, two blades which join at a fork crown, and a steerer or steering tube to which the handlebars attach ...
for consumer use. Marketing and sales departments were relocated to Chicago, while product development remained in Colorado Springs. A SRAM factory in Taichung
Taichung
-Demographics:Taichung’s population was an estimated 1,040,725 in August 2006. There are slightly more females in the city than males.24.32% of residents are children, while 16.63% are young people, 52.68% are middle-age, and 6.73% are elderly....
, Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
was converted to RockShox production after the RockShox acquisition. RockShox is responsible for producing bicycle suspension
Bicycle suspension
A bicycle suspension is the system or systems used to suspend the rider and all or part of the bicycle in order to protect them from the roughness of the terrain over which they travel...
products (both spring and air) including rear suspension, front suspension forks (for both MTB and pavement usage), suspension lockout remotes, maintenance products and since 2009 the reverb, a height adjustable seatpost.
Avid
On March 1, 2004 SRAM purchased Avid, a well-known designer and manufacturer of bicycle brake components. Its current line-up includes hydraulic disc brakeDisc brake
The disc brake or disk brake is a device for slowing or stopping the rotation of a wheel while it is in motion.A brake disc is usually made of cast iron, but may in some cases be made of composites such as reinforced carbon–carbon or ceramic matrix composites. This is connected to the wheel and/or...
s, mechanical disc brakes, rim brakes, levers, cables and maintenance products for a range of uses including MTB and cyclocross. They also produce two road bike disc brakes. As with RockShox, Avid's product development continued in Colorado Springs while marketing and sales divisions were moved to Chicago.
Truvativ
SRAM purchased Truvativ in 2005, providing SRAM with a line of crankCrankset
The crankset or chainset , is the component of a bicycle drivetrain that converts the reciprocating motion of the rider's legs into rotational motion used to drive the chain, which in turn drives the rear wheel...
s, bottom bracket
Bottom bracket
The bottom bracket on a bicycle connects the crankset to the bicycle and allows the crankset to rotate freely. It contains a spindle that the crankset attaches to, and the bearings that allow the spindle and cranks to rotate. The chainrings and pedals attach to the cranks...
s, handlebars
Bicycle handlebar
Bicycle handlebar or often bicycle handlebars refers to the steering mechanism for bicycles; the equivalent of a steering wheel. Besides steering, handlebars also often support a portion of the rider's weight, depending on their riding position, and provide a convenient mounting place for brake...
, stems
Stem (bicycle part)
The stem is the component on a bicycle that connects the handlebars to the steerer tube of the bicycle fork. Sometimes called a goose neck, a stem's design belongs to either a quill or threadless system, and each system is compatible with respective headset and fork designs:-Quill vs...
, pedals
Bicycle pedal
A bicycle pedal is the part of a bicycle that the rider pushes with their foot to propel the bicycle. It provides the connection between the cyclist's foot or shoe and the crank allowing the leg to turn the bottom bracket spindle and propel the bicycle's wheels...
, seatpost
Seatpost
A bicycle seatpost, seatpin, saddlepole, saddle pillar, or saddle pin is a tube that extends upwards from the bicycle frame to the saddle. The amount that it extends out of the frame can usually be adjusted, and there is usually a mark that indicates the minimum insertion...
s and chain retention systems. This allowed SRAM to offer a complete drivetrain with the first SRAM branded road groupsets being released the following year.
Zipp
On November 6, 2007 SRAM acquired Zipp Speed WeaponryZipp
Zipp is an American company that designs, makes and markets high-performance carbon-composite bicycle wheels for road cycling and triathlons. The company has expanded its product range to include handlebars, cranks and stems.- History :...
, a company designing and manufacturing high-end carbon wheelsets for use on road-racers, as well as other components such as cranks, handlebars and disc wheels.
Results in professional cycling
Alberto ContadorAlberto Contador
Alberto Contador Velasco is a Spanish professional road bicycle racer for UCI ProTeam . He was the winner of the 2007 Tour de France with the team. With the Astana team he has won the 2008 Giro d'Italia, the 2008 Vuelta a España, the 2009 Tour de France, the 2010 Tour de France and won 2011 Giro...
, 1st overall, 2008
2008 Giro d'Italia
The 2008 Giro d'Italia was the 91st running of the Giro d'Italia, one of cycling's Grand Tours. It began in Palermo on 10 May and ended in Milan on 1 June. Twenty-two teams entered the race, which was won by Spaniard Alberto Contador of the cycling team...
Giro d'Italia
Giro d'Italia
The Giro d'Italia , also simply known as The Giro, is a long distance road bicycle racing stage race for professional cyclists held over three weeks in May/early June in and around Italy. The Giro is one of the three Grand Tours , and is part of the UCI World Ranking calendar...
(SRAM's first Grand Tour
Grand Tour (cycling)
In road bicycle racing, a Grand Tour refers to one of the three major European professional cycling stage races:* Tour de France – Tour of France , held in July* Giro d'Italia – Tour of Italy , held in May...
victory)
Riccardo Ricco
Riccardo Riccò
Riccardo Riccò is a professional road bicycle racer from Italy, currently under contract to UCI Continental team Meridiana-Kamen, and suspended from competition. He was ejected from the 2008 Tour de France for doping violations and suspended...
, 2nd overall, 2008 Giro d'Italia
Alberto Contador
Alberto Contador
Alberto Contador Velasco is a Spanish professional road bicycle racer for UCI ProTeam . He was the winner of the 2007 Tour de France with the team. With the Astana team he has won the 2008 Giro d'Italia, the 2008 Vuelta a España, the 2009 Tour de France, the 2010 Tour de France and won 2011 Giro...
, 1st overall, 2008
2008 Vuelta a España
The 2008 Vuelta a España was the 63rd edition of the Vuelta a España, one of cycling's Grand Tours. The event took place from 30 August to 21 September 2008 over 21 stages covering . The first stage was a team time trial in Granada. The event finished in Madrid 23 days later...
Vuelta a España
Vuelta a España
The Vuelta a España is a three-week road bicycle racing stage race that is one of the three "Grand Tours" of Europe and part of the UCI World Ranking calendar. The race lasts three weeks and attracts cyclists from around the world. The race is broken into day-long segments, called stages...
Nicole Cooke
Nicole Cooke
Nicole Denise Cooke, MBE is a Welsh professional road bicycle racer for the Mario Cipollini - Giordana Team team, and is the current Olympic road race champion.-Early life:...
, 1st, 2008
2008 UCI Road World Championships
The 2008 UCI Road World Championships took place in Varese, Italy, between September 23 and September 28, 2008. The event consisted of a road race and a time trial for men, women and men under 23.-Medals table:-Events summary:-External links:**...
UCI Road World Championships
UCI Road World Championships
The UCI Road World Championships are the annual world championships for bicycle road racing organized by the Union Cycliste Internationale...
Alberto Contador
Alberto Contador
Alberto Contador Velasco is a Spanish professional road bicycle racer for UCI ProTeam . He was the winner of the 2007 Tour de France with the team. With the Astana team he has won the 2008 Giro d'Italia, the 2008 Vuelta a España, the 2009 Tour de France, the 2010 Tour de France and won 2011 Giro...
, 1st overall, 2009
2009 Tour de France
The 2009 Tour de France was the 96th edition of the Tour de France, one of cycling's Grand Tours. It started on 4 July in the principality of Monaco with a individual time trial which included a section of the Circuit de Monaco...
Tour de France
Tour de France
The Tour de France is an annual bicycle race held in France and nearby countries. First staged in 1903, the race covers more than and lasts three weeks. As the best known and most prestigious of cycling's three "Grand Tours", the Tour de France attracts riders and teams from around the world. The...
Andy Schleck
Andy Schleck
Andy Raymond Schleck is a Luxembourgish professional road bicycle racer for UCI ProTour team . He is the younger brother of Fränk Schleck, who also rides for . Their father Johny Schleck rode the Tour de France and Vuelta a España between 1965 and 1974...
, 2nd overall, 2009 Tour de France
Lance Armstrong
Lance Armstrong
Lance Edward Armstrong is an American former professional road racing cyclist who won the Tour de France a record seven consecutive times, after having survived testicular cancer. He is also the founder and chairman of the Lance Armstrong Foundation for cancer research and support...
, 3rd overall, 2009 Tour de France
Fabian Cancellara
Fabian Cancellara
Fabian Cancellara is a Swiss professional road bicycle racer for UCI ProTeam . A time trial specialist, he is a four-time World Time Trial Champion and is the current Olympic gold medalist...
, 1st Individual Time Trial, 2009
2009 UCI Road World Championships
The 2009 UCI Road World Championships were held in Mendrisio, Switzerland, between September 23 and September 27, 2009. The event consisted of a road race and a time trial for men, women and men under 23.-Medals table:-Individual time trials:...
UCI Road World Championships
UCI Road World Championships
The UCI Road World Championships are the annual world championships for bicycle road racing organized by the Union Cycliste Internationale...
Fabian Cancellara
Fabian Cancellara
Fabian Cancellara is a Swiss professional road bicycle racer for UCI ProTeam . A time trial specialist, he is a four-time World Time Trial Champion and is the current Olympic gold medalist...
, 1st, 2010
2010 Paris–Roubaix
The 2010 edition of the Paris–Roubaix cycling classic took place on April 11, 2010. The race is the ninth event in the inaugural UCI World Ranking series. The race was won by Swiss rider Fabian Cancellara.- Teams :...
Paris–Roubaix
Alberto Contador
Alberto Contador
Alberto Contador Velasco is a Spanish professional road bicycle racer for UCI ProTeam . He was the winner of the 2007 Tour de France with the team. With the Astana team he has won the 2008 Giro d'Italia, the 2008 Vuelta a España, the 2009 Tour de France, the 2010 Tour de France and won 2011 Giro...
, 1st overall, 2010 Tour de France
Thor Hushovd
Thor Hushovd
Thor Hushovd is a Norwegian professional road bicycle racer riding . He has signed for from 2012 onwards. He is known for sprinting and time trialing and is the 2010 Norwegian and world road champion. He is the first Norwegian to lead the Tour de France, and first Scandinavian to win the road...
, 1st, 2010 World Road Race Champion, Melbourne - Geelong October 3, 2010
Financials
In 2011 the company announced the intention to go public. SRAM reported net sales of $524.1 million in 2010, and has grown at a rate of about 16 percent annually in the four years prior to 2010. The company has estimated that it holds about 15 percent of the $3.5 billion bicycle components market.- Sales 1987 $0 million
- Sales 1994 $25 million
- Sales 1995 $40 million
- Sales 1999 $120 million
- Sales 2001 $120 million
- Sales 2003 $150 million
- Sales 2004 $160 million (estimate)
- Sales 2006 $283.8 million
- Sales 2007 $356.0 million
- Sales 2008 $478.4 million
- Sales 2009 $399.6 million
- Sales 2010 $524.2 million