Cervélo enters into financial agreement with Pon Holdings company

Garmin-Cervélo enjoyed its best Tour de France ever, including a stint in yellow for Thor Hushovd aboard the new Cervélo S5. (Image credit: Jonny Irick)

Cervélo announced on Friday that it had entered into a "financing agreement" with the Dutch company Pon Holdings BV.

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"Cervélo has entered into a financing arrangement with PON Holdings BV," said a statement on the Cervélo website. "In addition, Cervélo and PON have signed a Letter of Intent that enables both parties to agree on a sale of Cervélo in exclusivity."

Founded in 1895, Pon is one of the largest family-owned businesses in the Netherlands. It is an international trading and service company, engaged in a wide range of activities. Pon employs more than 11,000 people at over 250 branches across 12 countries.

The company has been involved with cycling from early in its history as it began importing Opel bicycles in 1900. Earlier this year it purchased the Dutch bicycle company Gazelle and recently bought 92 percent of the shares in Derby Cycle Werke, the German company that owns the Raleigh, Univega and Kalkhoff brands, according to Bicycle Retailer and Industry News.

Cervélo was co-founded in 1995 by engineers Phil White and Gérard Vroomen.