# A peek into financials



## merckxman (Jan 23, 2002)

EDEGEM, Belgium - Eddy Merckx Holding, the parent company of the Eddy Merckx Cycles, raised its the capital by 7.4 million euro with an new investment of an all new partner in the Eddy Merckx Holding, Diepensteyn, the holding company of Jan Toye CEO of Palm Breweries.

Besides the investment of Diepensteyn, Eddy Merckx’s main shareholder Sobradis, the holding company of George Brantegem, turned an existing loan into capital. “The capital increase was for done several reasons,” says Kurt Moons, CEO of Eddy Merckx Cycles. “The bicycle industry is very capital intensive. To realize our new ideas and plans we needed a stronger financial base.”After the financial transaction Sobradis still controls 67 percent of the shares. With almost 20 percent Diepensteyn become the second largest party. The remaining shares are owned by Kurt Moons and Eddy Merckx himself.

Merckx sold his creation in 2008 to Sobradis. Following the acquisition the annual results of Eddy Merckx Cycles were anything but good. The turnover was rising but the profitability was dramatic. In 2009, both net income (-853,654 euro) and cash flow (-735,222 euro) showed red figures. And that’s does not include the expensive deal with the Quick-Step Cycling Team as of 2010. Because the company extended its financial year, the figures over 2010 are not yet published. “We are expecting the figures to show profit over 2010”, said Kurt Moons.

Merckx himself is no longer employed but the company still hires his services. His presence is very important for the future of the company. Merckx is not going to stop. “The factory is my life. I have too much energy to retire.”


----------



## pmf (Feb 23, 2004)

I think Eddy Merckx bikes is going down the tubes. Soon production will move to the Trigon plant in China and they will be just another stamped out carbon frame like everyone else is selling. Either that, or it'll be some boutique bike like Cipollini. Too bad they don't make steel frames anymore. I think there's a growing demand for them.


----------



## zacolnago (Feb 15, 2006)

pmf said:


> I think Eddy Merckx bikes is going down the tubes. Soon production will move to the Trigon plant in China and they will be just another stamped out carbon frame like everyone else is selling. Either that, or it'll be some boutique bike like Cipollini. Too bad they don't make steel frames anymore. I think there's a growing demand for them.


I thought the frames were already being made by Trigon alongside the Pinarello's. In my opinion the company has lost its soul, like most of the worlds manufacturers.


----------



## pmf (Feb 23, 2004)

zacolnago said:


> I thought the frames were already being made by Trigon alongside the Pinarello's. In my opinion the company has lost its soul, like most of the worlds manufacturers.


For some reason, I was under the impression that Merckx bikes were made in the same Florence Italy factory that makes Cipollini bikes. I watched the Merckx info video:

Eddy Merckx Cycles | Home

and I think you're right. All the footage from the euro factory is guys putting decals and assembling the bikes. The high end frame even has asymetrical chainstays (ala Pinarello). The bikes sure do look like every stamped carbon bike out there. They even have a steel townie with flat handlebars :yikes: The horror. The horror.


----------



## Cinelli 82220 (Dec 2, 2010)

The EMX7 and Dogma2 have very similar fairings behind the fork crown. Almost as if they were designed by the same people. 

I wondered about the company several months ago when I tried to buy an EMX7. The distibutor in Canada couldn't get any info from the company about inventory or delivery. I tried to buy from a couple of UK dealers and they had the same problems, they would take an order but could not give any commitment for delivery.


----------



## pmf (Feb 23, 2004)

Since these bikes are made in the same factory, why pay the money for the name when you can get a very similar if not identical bike with a different name? I know Nuevation bikes are made by Trigon. 

FC500

Or just buy a Trigon branded bike

[-TRIGON-]

Something about a carbon fiber Eddy Merckx is just unappealing to me.


----------



## bikerjulio (Jan 19, 2010)

pmf said:


> Something about a carbon fiber Eddy Merckx is just unappealing to me.


have to agree. I've got one each in steel, ti, and scandium which i love but have no interest in their carbon bikes. i've also seen some horribly garish paint schemes coupled with wierd tube shapes.


----------



## PDex (Mar 23, 2004)

Makes me love my TeamSC even more.


----------



## Mannyfern09 (Oct 17, 2012)




----------

