BOULDER, CO (BRAIN)—VeloGear, a 14-year-old catalog operation, is for sale. Anyone interested in buying a turn-key company in the cycling industry with a list of 200,000 names might find a bargain.
VeloGear is currently part of the operation at VeloNews and Inside Triathlon. That company, Inside Communications, was bought earlier this year by private-equity-backed Competitor Group.
A spokesman said the Boulder-based VeloGear is a poor fit for the San Diego company. But it could be an excellent buy for someone interested in getting into the industry or with an ancillary operation.
"A direct-marketing operation isn't a good fit with the media and event focus of the group," said Scott Dickey, Competitor’s chief operating officer. “It just didn't have the scale we were looking for and we think VeloGear would have a better home with someone focused on selling direct,” he added.
Founded in 1994, VeloGear (www.velogear.com) primarily sells cycling clothing, books, posters, and other cycling-related gift items. With approximately 200,000 lifetime buyers, the catalog has a large list in the cycling category.
But the average order size—$67.60 per order—fails to hit the profitability level that the Competitor Group is seeking. The operation’s best year was 2005 when Lance Armstrong’s popularity was highest. VeloGear has five full and part-time employees.
Competitor owns a diverse group of endurance sports media and event assets such as Elite Racing, Competitor Magazine, Muddy Buddy, VeloNews, Triathlete, VeloPress, Inside Triathlon and others.
Contact Felix Magowan at (303) 245-2122 or fmagowan@competitorgroup.com for more information.
