SRAM Corporation

SRAM, Corp.
Private
Industry cycling components
Founded 1987
Headquarters Chicago, Illinois, USA
Key people
 Stanley R. Day Jr. (CEO)
Products Bicycle and related components
Revenue $524 million
Number of employees
 3000
Slogan Beyond performance
Website www.sram.com

SRAM Corporation is a privately held bicycle component manufacturer based in Chicago, Illinois, USA, founded in 1987.[1] 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).[2]The company is known for producing cycling components, including some internally developed, such as Grip Shift, DoubleTap, dedicated 1x11 mountain and road drivetrains, and the only available wireless electronic groupset, SRAM Red eTap.[3][4][5]

The company grew organically and through acquisitions to become one of the largest high-end cycling component brands in the world, selling under the brands SRAM, Avid, RockShox, Truvativ, Quarq, and Zipp. Their components are manufactured primarily in-house, in factories located in Portugal, Taiwan, China, and the U.S., and distributed and sold as Original equipment manufacturer (OEM) equipment and aftermarket components in high-end markets globally.

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. That technology was then adapted for mountain bikes in 1991.

In 1990 the company sued Shimano for unfair business practices, noting that Shimano offered, in effect, a 10-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, all Shimano competitors won the right to compete in the lucrative OEM bicycle components arena.[2]

The years after the Shimano settlement were marked by dramatic growth for the company, as it increased sales greatly and added other companies to its portfolio. SRAM is an example of a 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 the parts needed to build a complete bike. SRAM now incorporates the former bicycle divisions of Fichtel and Sachs, Sachs-Huret, and recently acquired component makers RockShox, Avid, Truvativ, Zipp, and QUARQ (see below).

2008 Rock Shox SID World Cup mountain bike suspension fork

In 1994 SRAM introduced their first mountain bike rear derailleur, dubbed “ESP”, that featured a 1:1 cable actuation ratio that was more tolerant of cable contamination. The new derailleur was compatible with SRAM’s ESP Grip Shifters. This was a critical first step for SRAM toward producing a complete shifting system. By 1997 SRAM was ready to make its first acquisition, Sachs. This acquisition provided SRAM with a group of experienced metallurgists and engineers as well as a successful chain and internally geared hub production line.

SRAM’s released its first “X.O” rear derailleur in 2001. It was a complete redesign of SRAM’s existing ESP derailleurs, however it still made use of SRAM’s proprietary 1:1 shift actuation ratio for improved shifting performance with worn or contaminated cables. Made from forged aluminum, the introduction of SRAM’s first high-end derailleur marked a turning point for the company’s mountain bike shifting groups. The introduction of X.O also marked the first time trigger shifters were available as a shifting option for SRAM rear derailleurs.

In 2002 SRAM acquired suspension manufacturer, Rock Shox. Teetering on the brink of bankruptcy in the year prior to the acquisition, Rock Shox made a dramatic turn around. Quality and OEM assembly lead times were improved as Rock Shox made a return to prominence in the high-end mountain bike market. Shortly after the acquisition SRAM developed a new fork damper technology dubbed “Motion Control” that allowed riders to control low-speed compression and rebound damping while also providing the ability to firm up the suspension with the flip of a switch. Motion Control was a market success and Rock Shox continues to use variants of the Motion Control damper on select models.

Avid was SRAM’s next acquisition in spring of 2004. Avid produced popular hydraulic disc brakes and gave SRAM one more means to compete with Shimano. Later that same year SRAM purchased Truvativ, a crank, bottom bracket, and chainring manufacturer based out of San Luis Obispo, California. With Truvativ as part of the SRAM family, the company could finally sell a complete drivetrain package to OEM customers.

Although SRAM began as a manufacturer of road bike shifters, the company had largely left the road market in 1993 in favor of the rapidly growing mountain bike market. By 2004 SRAM planned a return to the road and began development on a new road groupset, Force, which it brought to market in 2006. Force was raced in the Tour de France for the first time the following year. The group made use of a new proprietary shifting technology known as DoubleTap. The technology allows the rider to shift a derailleur in both directions using a single shifter paddle.

Late in 2007 SRAM made another acquisition, Zipp, to complete its component portfolio. The Zipp acquisition brought with it expertise in carbon fiber engineering and manufacturing, particularly in wheel making applications. This also rounded out SRAM’s component offerings thereby allowing SRAM to sell every component needed to build a complete bicycle. In 2008 SRAM introduced a new premium road groupset, SRAM RED, the lightest complete road groupset available.

SRAM’s most recent acquisition was of the power meter crank manufacturer, Quarq. This acquisition took place in 2011. By 2012 SRAM had incorporated power meters into its top of the line RED road group. Also in 2012 SRAM introduced wide range 1x11 mountain bike shifting with its XX1 groupset. The new groupset made use of a 10-42 cassette and a patented single front chainring that made use of both narrow and specially shaped wide teeth to retain the chain without a chain guide. The rear derailleur for the groupset was equally revolutionary and used a parallelogram that moved only laterally, a technology called X-Horizon, which offered more precise shifting and improved chain retention over conventional rear derailleurs.

By 2014 this same technology was adapted for use on cyclocross bikes with the introduction of SRAM Force CX1. The group was expanded in 2015 to use chainrings (up to 54-teeth) for other applications such as TT/Tri, road, and fitness bikes. With the expanded applications SRAM simplified the naming of the group to Force 1. The same year the company also developed a lower price point 1x11 road groupset option with similar features, Rival 1.

In August 2015 SRAM announced that it would release its long awaited wireless electronic road groupset, SRAM RED eTap. The group utilizes derailleurs with self-contained batteries to shift using wireless signals sent from the shift levers. Benefits of the system include more precise shifting, faster setup, and lower maintenance compared to a traditional mechanically activated shifting arrangement. SRAM RED eTap is currently the only available wireless shifting system and is the lightest electronically actuated groupset on the market.

Event sponsorships

SRAM has made significant efforts to support racing through sponsorships made in partnership with race promoters. Examples of this include the Amgen Tour of California, Ironman®, the Sea Otter Classic, and Crankworks.

At the Amgen Tour of California SRAM is the neutral race support sponsor for both the women’s and men’s races and a title sponsor for the entire women’s race. SRAM is also a sponsor of specific stages within the men’s ATOC race.

SRAM is the neutral race support sponsor for numerous professional Ironman events including the US National Championships, European Championships, and World Championships. As a title sponsor for the Sea Otter Classic in Monterey, California for roughly a decade, SRAM provides neutral race support for entrants and hosts large product display and technical service tents in the expo area.

SRAM is also a supporter of the Crankworks festival held at the Whistler Bike Park in British Columbia, Canada.

Triathlon

In the late 1980s and early 90s SRAM Grip Shifters were quickly adopted by triathletes. Grip Shift’s aim to allow riders to shift without removing their hands from the bars made the product uniquely suited to the needs of triathletes. These racers needed to maintain an aero tuck with their hands extended on aero extensions, a place where Grip Shifters were designed to perch. It offered both SRAM and the athletes a competitive advantage at a time when there were few aerodynamic shifting options available.

Today SRAM sponsors a number of top triathletes including Ironman World Champ, Jan Frodeno. Other notable athletes sponsored by SRAM include Sebastien Kienle, Javier Gomez, Marinda Carfrae, Alistair and Jonathan Brownlee, Caroline Steffen, Jordan Rapp, and Non Stanford.

Women's cycling

2014 time trial bike of world champion Ellen van Dijk with SRAM.

SRAM is a standout among component manufacturers that has consistently assigned equal value to women’s cycling. Products and technologies that reflect that commitment to the broad range of female riders’ needs include shifter Reach Adjust, WiFLi (wide range road gearing options), Quarq cranksets available in down to 162.5mm lengths, and 38cm wide Zipp handlebars.

SRAM is also an ardent supporter of women’s professional cycling. SRAM is a title sponsor for the Women’s Amgen Tour of California empowered with SRAM. The company also sponsors many top teams in the women’s World Tour including 2015 UCI Team Time Trial World Champions: Velocio-SRAM, as well as Boels-Dolmans Cycling Team, Twenty16 p/b SHO-AIR, and Optum Pro Cycling p/b Kelly Benefit Strategies.

Top female athletes sponsored by SRAM include 2015 UCI Road World Champion Lizzie Armitstead, 2015 UCI Junior Road and Time Trial World Champion Chloe Dygert, 2014 UCI Elite Time Trial Champion Lisa Brennauer, and 2015 Amgen Tour of California empowered with SRAM winner Trixie Worrack.

Brands

SRAM has purchased a number of companies, enabling 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 groupsets. Companies SRAM has purchased and converted into marque brands include Rockshox, Truvativ, Sachs, Avid and Zipp.[6]

Sachs Bicycle Components

In November 1997 SRAM acquired Sachs Bicycle Components, 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.[7] In 2015 the former Sachs Schweinfurt factory was converted for use as a SRAM research and development center as well as a warehouse for European distribution. The remainder of the Sachs company (ZF Sachs) is now owned by ZF Friedrichshafen AG. ZF Sachs mainly deals in parts for motorized vehicles.

RockShox

Main article: RockShox

SRAM purchased RockShox on February 19, 2002. They were one of the first companies to introduce a bicycle suspension fork 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 acquisition. RockShox is responsible for producing bicycle suspension products including front suspension forks for both mountain biking (MTB) and pavement usage, rear suspension, suspension lockout remotes, maintenance products and a height adjustable seatpost.

Avid

Avid Code 2008 Caliper and Disc
Avid Code 2008 Lever

On March 1, 2004 SRAM purchased Avid, a well-known designer and manufacturer of bicycle brake components. Its current line-up includes 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.[8]

Truvativ

SRAM purchased Truvativ in 2005, providing SRAM with a line of cranks, bottom brackets, handlebars, stems, pedals, seatposts 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 Weaponry, a company designing and manufacturing high-end carbon wheelsets for use on road racing bicycles, as well as other high-end components such as cranksets, handlebars, stems and wheels.[9] The company operates out of Indianapolis, Indiana and produces all of its carbon fiber rims at the company's American factory.

Quarq

In 2011 SRAM acquired power meter crank manufacturer, Quarq. Based out of Spearfish, South Dakota, Quarq was founded by Jim and Mieke Meyer. The company is best known for its crank based power meters, but it is venturing out into new areas with its Quarq Race Intelligence product, a live telemetry system aimed at race promoters, race officials, and media. Following the pattern set by other SRAM acquisitions, Quarq continues to operate out of its Spearfish location.

SRAM groupsets

SRAM currently has 8 road bike groupsets (in descending order of price/quality) that all use the SRAM Exact Actuation™ ratio:

groupset RED Force Rival Apex
2010 Rival: 10 speed Apex: 10 speed
2011
2012 RED 2012: 10 speed Force 2012: 10 speed
2013 RED 22: 11 speed Force 22: 11 speed
2014 Rival 22: 11 speed
2015 RED eTap: 11 speed Force 1: 1x11 speed Rival 1: 1x11 speed
2016 Apex 1: 1x11 speed

and 11 mountain bike groupset (each designed for specific mountain biking disciplines):

Corporate

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.[28][29] On May 12, 2011, the company announced in a filing that it intended to raise up to $300 million in an IPO.[30] Shortly later, the company consolidated its debt to pay off the assets owned by the private equity firm.[31] Those plans were put on hold due to volatility in the stock market.[32] 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.[28]

See also

References

  1. ↑ About SRAM
  2. 1 2 http://www.findarticles.com/p/articles/mi_qn4155/is_20000727/ai_n13875164. Missing or empty |title= (help)
  3. ↑ http://velonews.competitor.com/2015/08/news/sram-comes-out-swinging-with-red-e-tap_382751
  4. ↑ http://singletrackworld.com/2014/03/sram-releases-1x11-force-cx1-cyclocross-group/
  5. ↑ http://autobus.cyclingnews.com/tech.php?id=tech/2006/reviews/sram_force
  6. ↑ Sram International Corp S-1 Filing (IPO Registration)
  7. ↑ http://www.fundinguniverse.com/company-histories/SRAM-Corporation-Company-History.html SRAM-Corporation-Company-History
  8. ↑ "SRAM Acquires Avid". Pinkbike. Retrieved 24 August 2015.
  9. ↑ SRAM | News and Events | News
  10. ↑ https://www.sram.com/sram/road/family/sram-red-etap
  11. ↑ https://www.sram.com/sram/road/family/sram-red
  12. ↑ https://www.sram.com/sram/road/family/sram-force
  13. ↑ https://www.sram.com/sram/road/family/sram-force-1
  14. ↑ https://www.sram.com/sram/road/family/sram-rival
  15. ↑ https://www.sram.com/sram/road/family/sram-rival-1
  16. ↑ https://www.sram.com/sram/road/family/sram-apex
  17. ↑ https://www.sram.com/sram/road/family/sram-apex-1
  18. ↑ https://www.sram.com/sram/mountain/family/x01-eagle
  19. ↑ https://www.sram.com/sram/mountain/family/xx1
  20. ↑ https://www.sram.com/sram/mountain/family/x01
  21. ↑ https://www.sram.com/sram/mountain/family/x01
  22. ↑ https://www.sram.com/sram/mountain/family/x0
  23. ↑ https://www.sram.com/sram/mountain/family/x1
  24. ↑ https://www.sram.com/sram/mountain/family/gx
  25. ↑ https://www.sram.com/sram/mountain/family/x9
  26. ↑ https://www.sram.com/sram/mountain/family/x7
  27. ↑ https://www.sram.com/sram/mountain/family/x5
  28. 1 2 "News". Bicycle Retailer and Industry News. Retrieved 24 August 2015.
  29. ↑ "Will SRAM's deal with Lehman Brothers stick?". Cyclingnews.com. Retrieved 24 August 2015.
  30. ↑ "UPDATE 1-SRAM International files for IPO of upto $300 mln". Reuters. 12 May 2011. Retrieved 2011-05-12.
  31. ↑ "IPO still on the horizon for SRAM". Bicycle Retailer and Industry News. Retrieved 24 August 2015.
  32. ↑ "SRAM IPO on Hold". Bicycle Retailer and Industry News. Retrieved 24 August 2015.
  33. ↑ Stanford business case: SHIMANO AND THE HIGH-END ROAD BIKE INDUSTRY, CASE:SM-150 DATE: 01/27/06
  34. ↑ "History of SRAM Corporation – FundingUniverse". Retrieved 24 August 2015.
  35. ↑ Chicago Athlete - Feature Article
  36. 1 2 3 4 5 http://ipo.nasdaq.com/ViewFiling_frames.asp?FileName=0001193125-11-136366.txt&FilePath=\2011\05\12\&eHTML=&View=html
  37. ↑ http://www.hoovers.com/search/company-search-results/100005142-1.html?type=company&term=SRAM

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