Revzilla to be bought out.

[kmoney_imp]

Report: Cycle Gear to buy Philadelphia's RevZilla in $400-500 million deal

Looks like Revzilla may be bought out by Cycle Gear. Always had a huge respect for Revzilla and their business practices (even moreso now that I realize they built a half-billion dollar business around them) and hope this doesn't mean the end for their excellent customer service.

 

[the Ferret]

Wow guess Anthony is going to be mega rich eh?

Nothing but good things to say about Revzilla hope the buy out doesn't change any of that.

 

[kmoney_imp]

That was my first thought too -- I hope he still sticks around to to "Revzilla TV," as it's an awesome source for gear reviews.

Assuming that $.5B represts anything near a traditional times earnings valuation, I'm guessing he was probably at the "doing it because I love it" stage for a while though.

 

[gossman_imp]

Hopefully it continues to be a stellar place to buy gear. They are one of the few places I can find tall gear that actually fits.

 

[CB4ME_imp]

I've purchased 3 helmets, 2 jackets, 2 pair of boots and gloves from them. Always amazing service. Everything arrived in 3 day or less (nice to live 80 miles from them).

 

[jedd_imp]

"Hey, this is Anthony at Revzilla!"
Pure genius branding, imho...
CG better keep him around, or else the brand will go belly down. I'm thinking golden handcuffs will definitely be on the table come final transaction.

 

[metallyguitarded_imp]

This buyout has me a little worried. Revzilla has been fantastic. No real complaints about Cycle Gear but it's just blah. I'm sure there will be some changes but I'm hoping they are kept to a minimum.

 

[redbirds_imp]

Always wonderful service from Revzilla. I'm sad to see this happen as I expect things won't be the same.

 

[Nemo_imp]

Good for the guys who built Revzilla! I think they deserve every penny they get from this deal.

CG will have big shoes to fill to keep up the service and Zilla's presence.

 

[Capo]

Happy for Anthony, sad for motorcyclists like us. Cycle Gear is the K Mart of the bike accessories industry, and their store brand products are horrible, especially the 'Bilt' line. I hope it's more of a reverse merger and the Revzilla team takes charge.


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[CIP57_imp]

Sad to hear, Revzilla is my go to place.

 

[pdedse]

Happy for Anthony, sad for motorcyclists like us. Cycle Gear is the K Mart of the bike accessories industry, and their store brand products are horrible, especially the 'Bilt' line. I hope it's more of a reverse merger and the Revzilla team takes charge.


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Agree about Bilt...quit going to a local Cycle Gear place once I saw all that junk in there.

 

[jedd_imp]

I'll say this about BILT.
It's priced right. and it serves the entry level & kids/women's market quite well.
When a new rider starts out, they can be ATGATT from head to toe w/ one swipe of the CC, w/o going broke.
Then, as they become more seasoned, they graduate up to the top quality brand. Getting there takes time, experience, and research.

And with kids riding m/c, they're constantly growing, so what you bought 9-12 months ago is now too small.
BILT's price point makes it affordable enough to keep kids riding yr after yr after yr.

 

[grover_imp]

Agreed. My experience with Revzilla has been great. We just need to vote with our $$...if the service, pricing, and detailed reviews are there, I'll keep voting with my wallet, but if they aren't, then BYE!! (would be a shame though, RevZ has been great)


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[Guth_imp]

Count me as another satisfied customer of Revzilla. When I read the mention that Cycle Gear was to be the buyer the thought that went through my head was "Welcome to BiltrevSedicizilla".

The point was made above that the Bilt gear serves a market in need and I don't disagree with that. But I once commented to the manager of my local CG that they should should rename the place the Bilt Store as it seeming comprised the majority of gear that was out on display. They might have throttled that mix back a bit, but I'd rather see a bit more variety offered up. I can't imagine that Revzilla will be the same after such a deal.

 

[TINK_imp]

Really enjoy Revzilla. Cycle Gear, not so much.
Hope Cycle Gear executives realize what a good business model Revzilla is and not tamper with a good thing... time will tell.

 

[Motogeezer1949_imp]

I like 'em both. Totally agree with Jedd. Bilt stuff has a 5 year guarantee. No store is all things to all riders.

 

[rbike_imp]

I'm not surprised. I noticed stock was out on items I was looking at purchasing. That is the first thing companies do as they prepare to sell out - Make the profits look higher by not replacing inventory. Typical current bad business practice. Maybe that is what 7d has done to me!

 

[alphonsus_imp]

rbike, I understand that you are sceptical, but your out of stock situation is very unlikely to have anything to do with the company's valuation. Firstly, Revzilla has been around for 9 years and their valuation was likely based on profitability results and trends during that whole period. Secondly inventories affect the balance sheet and cash flow but not profitability, since the cost of inventory is only accounted when those goods are sold. (Thirdly, since such a large transaction will have been pored over for months by highly paid investment bankers and accountants, unlikely that a cheap trick like that will increase the valuation they come up with.)

I'm not familiar with cycle gear as I live in Europe but even I know and like Revzilla, watched many of their review videos and also followed the company out of interest. I think any smart buyer will realise they are buying a brand that is built around customer service, so it's unlikely they will start by firing all the "gear geeks". Also I'm sure the founders will care and have a strong interest in who they sell their "baby" to and under what conditions. Overall it's a good thing for them, they built a great company and deserve the payoff, and it's great motivation for future entrepreneurs, so in the long term deals like that can lead to more and more new and customer oriented businesses popping up.

I'm not surprised. I noticed stock was out on items I was looking at purchasing. That is the first thing companies do as they prepare to sell out - Make the profits look higher by not replacing inventory. Typical current bad business practice. Maybe that is what 7d has done to me!

 

[Chapomis_imp]

I was in a Cycle Gear store about a month ago. It was okay if you are looking for low end stuf. Its the kind of place that is always having sales. If Cycle Gear is a Walmart then Twisted Throttle was a Macy's. They would be smart to get rid of the Cycle Gear name and keep Revzilla.