Schwinn Buys GT Bicycles for $170 Million

The makers of Schwinn bicycles said Friday they have completed their acquisition of Santa Ana-based GT Bicycles Inc. for about $170 million, creating one of the largest U.S. makers of bicycles sold through independent dealers. Schwinn Holdings Corp., a unit of Questor Partners Fund LP, is paying $8 a share, or about $80 million in cash, a 68% premium on GT’s closing price of $4.75 on June 19, before the acquisition was announced. Schwinn, founded in 1895, also will assume about $90 million in GT debt. Schwinn, based in Boulder, Colo., came out of bankruptcy in 1994 and was purchased by Questor in 1997.