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Old February 5th, 2016, 02:43 PM   #1
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Cycle Gear nears deal to buy Revzilla

EDIT: Partnership is official and the two will be operating as independent companies. See this post.















http://www.reuters.com/article/revzi...-idUSL2N15J1QD

Quote:
Feb 4 - U.S. motorcycle store chain Cycle Gear Inc. is close to acquiring RevZilla, a website that sells motorcycle apparel, in deal that would create a company valued at between $400 million and $500 million, including debt, a person familiar with the matter said.

A deal is expected to be announced in the coming days, according to the person, who asked not to be identified because the deal is not yet finalized and could still fall apart.

RevZilla and J.W. Childs, the private equity firm that owns Cycle Gear, could not immediately be reached for comment.

The deal will help Benicia, California-based Cycle Gear, which has more than 100 stores in 34 states, expand its Internet footprint. Philadelphia-based RevZilla, which has $100 million in sales, is owned by three young motorcycle enthusiasts who founded the company as twentysomethings in 2007.

RevZilla YouTube's page, which posts product reviews and videos about motorcycles, has more than 60 million views.

J.W. Childs acquired Cycle Gear in January 2015 from private equity firm Harvest Partners. (Reporting by Lauren Hirsch in New York; Editing by Alistair Bell)
What's everyone's thoughts on this?

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Old February 5th, 2016, 02:57 PM   #2
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Cuts down on variety, so I'm not necessarily thrilled about it. We buy a lot from RevZilla, if Cycle Gear doesn't have what I want, so hopefully they keep all of what RevZilla carries.
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Old February 5th, 2016, 03:14 PM   #3
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I never really used revzilla. I always used cycle gear since I like to see what i have first hand. Plus the staff has taught me plenty. However, I do believe having different companies helps to keep things competitive to which the consumer can benefit.
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Old February 5th, 2016, 03:15 PM   #4
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Not thrilled.

Cycle gear is useful because it's local. I can go buy oil, filters, etc. when I need them.

But they prioritize sub-par house brands and their web experience sucks. Look, I wear a pair of Bilt boots every time I ride on the street. I also wear CG base layers. It's adequate in a "get what you pay for" kind of way. But the only really good thing about this stuff is that it's cheap. That's what Cycle Gear is about at the core... "value priced" products. Sedici is somewhat better, but I'd rather go with a major brand.

Revzilla and STG are my go-tos for the good stuff. They've got a great attitude, prices, selection and customer service. If Revzilla starts being more like Cycle Gear, I'll take my business elsewhere.

If a merger had to happen, I'd much rather see Revzilla driving the bus.
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Old February 5th, 2016, 04:44 PM   #5
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Quote:
Originally Posted by adouglas View Post
If a merger had to happen, I'd much rather see Revzilla driving the bus.
I agree.

I'll look at CG, and at RZ. I like that CG has a house brand, glad that they exist, that they're local, and it's nice for those who need good prices. I like that RZ has a lot of brands, and will often buy from them if they have a better product for what I want. Something that's well-made- I don't need to pay the absolute minimum price for things.

It's possible Cycle Gear will keep the RevZilla products, and I hope they do.
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Old February 7th, 2016, 12:25 AM   #6
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In recent years, it's rare that I've seen brand consolidation result in better products (eg Fender buying out Jackson guitars)
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Old February 7th, 2016, 01:48 AM   #7
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Cyclegear makes some gear that I think should be illegal to be marketed as motorcycle gear, tbh. Their sedici stuff is okay but nearly everything else is total poo. Revzilla is fantastic. I've purchased from them a few times and it's always been a pleasure, and I've always gotten good gear.
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Old February 7th, 2016, 08:23 PM   #8
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Bilt Trackstar Suit after highside in a race. Lots of scuffs, no tearing of leather or seams. It's not as bad as people think it is. If it were, there would be lawsuits and they would no longer be in business.









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Old February 7th, 2016, 08:38 PM   #9
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This makes me mad. Revzilla is my go to for gear. I guess i better use up my zillacash!
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Old February 8th, 2016, 07:22 AM   #10
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If they can find a way to combine the two and make something better it will be great, but I'm guessing that Cyclegear will just dumb down Revzilla and it won't be great.
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Old February 8th, 2016, 08:45 AM   #11
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Can't say that I ever heard of or even used Cycle Gear. RevZilla has always been good from my experiences.
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Old February 8th, 2016, 12:39 PM   #12
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That sucks. I love Revzilla and how they run their website.

Can't wait to see another well-run privately owned company get bought by a corporation/firm/whatever, and go to ****.

On the plus side, I'll be saving money since I won't be buy as much gear now
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Old February 8th, 2016, 12:50 PM   #13
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I would hope Revzilla would never sell for such minimal profits. I can only see them grow from here.
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Old February 8th, 2016, 03:36 PM   #14
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Someone mentioned STG before too, have had nothing but great experiences with Van and the crew there. New Enough have been another good one. The way the Canadian dollar is now though it's a little hard to spend the money on brands you can't find locally here (Arai, RS Taichi, Forcefield, etc.).
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Old February 9th, 2016, 10:54 AM   #15
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Quote:
Originally Posted by adouglas View Post
Not thrilled.
...
Revzilla and STG are my go-tos for the good stuff. They've got a great attitude, prices, selection and customer service. If Revzilla starts being more like Cycle Gear, I'll take my business elsewhere.

If a merger had to happen, I'd much rather see Revzilla driving the bus.
I don't think I could've said it better. Revzilla's owner(s) (they're privately held, yes?) have earned the payday this likely represents for them, but I'm unenthused as a customer.
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Old February 9th, 2016, 02:10 PM   #16
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I talked to a couple salesmen in my local CG, and they told me that CG is planning a company wide overall in the store layout and in-store brand availability.. My guess is that means more high end Alpinestars, Dainese, and REV'IT, but most importantly, the brands CG didn't previously have the licenses to.. namely Schuberth, Scorpion, and HJC. Very similar to how GuitarCenter bought out Musician's Friend and other competitive companies..

Of course, this is just hearsay from a couple of low level salesmen, but there may be merit to it.. Either way, they didn't like it when I passed along adouglas' sentiment that RevZilla should be driving the joint venture's bus.. Haha
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Old February 9th, 2016, 03:28 PM   #17
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.. Either way, they didn't like it when I passed along adouglas' sentiment that RevZilla should be driving the joint venture's bus.. Haha
If they have ever ordered online from both companies, they'd be begging RevZilla to drive (and probably still waiting for their CG order to ship).
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Old February 9th, 2016, 06:29 PM   #18
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My native tongue is not English. I find this paragraph very confusing :

"RevZilla and J.W. Childs, the private equity firm that owns Cycle Gear, could not immediately be reached for comment."

I buy you and later you want to buy me back?

How does that work?


Last futzed with by Abu_Mishary; February 9th, 2016 at 06:29 PM. Reason: grammatical correction
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Old February 9th, 2016, 06:36 PM   #19
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I'm disappointed by this, revzilla and STG are my go to for good stuff. By the laws of the market system losing one of those two is only bad for the consumer in general but for me it would be personal. Revzilla is the vendor I go to when I need quality stuff quick, like a new helmet within 2-3 days because I binned one in a race and have another one to go to the next weekend. I've never had a bad experience with them which I feel may change if Cycle Gear takes over

I'll just have to take all my business to STG if that happens
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Old February 9th, 2016, 07:44 PM   #20
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Abu mishary. What the article is trying to say is that there are two completely seperate company's here. One is Revzilla and the other company is basically Cycle Gear. the company cycle gear wants to buy the other company Revzilla in hopes to make even more money. It is not sure if this will happens but it might. These stores only exist in the U.S. and fight over profit since they fight for money in the same industry. JW Childs, a bigger business firm, owns cycle gear. Revzilla and J.W. Childs are completely seperate. I think thats where you are getting confused. I hope this helps.
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Old February 9th, 2016, 10:22 PM   #21
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Quote:
Originally Posted by netdobeiras View Post
Abu mishary. What the article is trying to say is that there are two completely seperate company's here. One is Revzilla and the other company is basically Cycle Gear. the company cycle gear wants to buy the other company Revzilla in hopes to make even more money. It is not sure if this will happens but it might. These stores only exist in the U.S. and fight over profit since they fight for money in the same industry. JW Childs, a bigger business firm, owns cycle gear. Revzilla and J.W. Childs are completely seperate. I think thats where you are getting confused. I hope this helps.
Ahha... now it makes sense. Thank you netdobeiras.
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Old February 10th, 2016, 07:53 AM   #22
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noooooooooooooo!!!!!!

Unless they make all the CG shops a Revzilla shop i see no good coming of this....
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Old February 10th, 2016, 03:39 PM   #23
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The partnership is official now: http://www.revzilla.com/common-tread...e-gear-details

Looks like they will both be operating as sister companies independently. Here's an additional FAQ.
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Old February 10th, 2016, 04:01 PM   #24
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From their open letter:
Quote:
The era of big companies faking it at the consumers’ expense because of limited choices is long gone.
I'd like to live in Anthony's world.

The bright news is that his open letter otherwise 'talks the talk'. The unfortunate caveat is that any mildly sane PR should talk the talk. It's executing on those claims that usually fails. I hope this isn't one of those cases.
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Old February 10th, 2016, 04:06 PM   #25
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Whew. That's a relief.

The only (and I mean only) eyebrow-raisers are that Revzilla might evaluate CG house brands for inclusion on the ZLA website, and maybe develop their own brands (bad idea... not their core competency). But the wording is such that I don't really see it happening.
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Old February 10th, 2016, 07:55 PM   #26
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While it's a relief, I'm still a bit skeptic until I see things rolling. Anthony and the crew are ambitious people so I hope this partnership brings them closer to their vision rather than skirt away from what makes them great.
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Old February 10th, 2016, 08:29 PM   #27
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Is Cycle Gear really that bad in this business?
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Old February 10th, 2016, 10:34 PM   #28
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Cycle Gear carries adequate quality stuff, and a somewhat limited selection, at least in the stores. I got my jacket and my gloves there, as well as my helmet (well, they do have a decent selection of helmets). Their pants selection is sort of sad. I haven't really looked at their website; it may be better.

RevZilla has a much better selection, but it's not a store where you can try things on.
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Old February 10th, 2016, 11:15 PM   #29
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Quote:
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I haven't really looked at their website; it may be better.
save the trouble. Just been there. Yup... it's really that bad......
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Old February 11th, 2016, 05:06 AM   #30
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Originally Posted by CaliGrrl View Post


RevZilla has a much better selection, but it's not a store where you can try things on.
unless you live near Philly
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Old February 11th, 2016, 11:23 AM   #31
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Quote:
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Is Cycle Gear really that bad in this business?
Cycle Gear isn't bad at all, but they and Revzilla cover two different markets. Cycle Gear offers a good selection of cheaper lower-end gear (Bilt, Sedici, Street and Steel) for the very casual rider or riders on a budget. Revzilla offers a wider selection for higher-end gear (and generally better deals on them naturally). I shop from both depending on what I need.

Revzilla offers probably the best online shopping experience and service for motorcycle gear. If CG had bought Revzilla, I think it's fair conjecture that CG would start using Revzilla's resources to try creating a bigger online presence and possibly push out their in-house gear through those resources.
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Old February 11th, 2016, 02:22 PM   #32
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Originally Posted by asdfman View Post
Cycle Gear isn't bad at all, but they and Revzilla cover two different markets. Cycle Gear offers a good selection of cheaper lower-end gear (Bilt, Sedici, Street and Steel) for the very casual rider or riders on a budget. Revzilla offers a wider selection for higher-end gear (and generally better deals on them naturally). I shop from both depending on what I need.

Revzilla offers probably the best online shopping experience and service for motorcycle gear. If CG had bought Revzilla, I think it's fair conjecture that CG would start using Revzilla's resources to try creating a bigger online presence and possibly push out their in-house gear through those resources.
I would hope that CG would also bring some of Revzilla's web resources and higher end gear into their stores.
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Old February 11th, 2016, 02:27 PM   #33
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I would hope that CG would also bring some of Revzilla's web resources and higher end gear into their stores.
That would be nice too. I think there could be a lot of mutual benefits if they help each other out. CG's online shopping experience could definitely use a revamp and Revzilla brick & mortar stores would be amazing.
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Old February 14th, 2016, 04:14 PM   #34
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I have shopped with Revzilla for years and never had 1 bad experience with them. I have shopped at Cycle Gear a couple of times and they never had anything I was looking for. Maybe Anthony will not let that change for his company.
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