North Arc Capital is pleased to announce that they have acquired the Project 321 brand and bicycle hub-related assets from JLSO, Inc. Project 321 is the industry leader in high-engagement, magnetic-pawl mountain bike hubs.
Project 321, Inc. (“Project 321”) is a newly-formed, stand-alone entity that was incorporated to complete this acquisition. North Arc has a proven history of building businesses based on innovative, highly-engineered products with specific expertise in Wire EDM fabrication, CNC machining, and complex assembly processes. These capabilities will be leveraged to give Project 321 significant capacity on day one.
“This acquisition is fully aligned with our long-term strategic goals of diversification and an increased presence in the precision manufacturing of outdoor sporting goods components,” said Bryden Richardson, CEO of North Arc Capital. “The reputation of the Project 321 brand, combined with the recently announced Stan’s MPulse hub supply deal, make Project 321 an ideal platform to enter the cycling industry. We are extremely fortunate to be able to learn from Project 321’s years of experience. Project 321 products initially utilized Industry Nine’s pawls and drive rings and evolved to its current magnetic pawl design, which has seen years of refinement and dependable use in the field.”
“Our intent is to drive a step-change in the performance and durability of bicycle hubs. We have previously demonstrated the ability to patent and commercialize industry-leading sporting goods components with TriggerTech, and our ambition is to do something comparable in the bicycle hub space.”
The purchase has closed, and manufacturing is currently shifting to Mississauga, Canada. The G2 hub has been discontinued, and a brand-new G3 hub, which has some common components with Stan’s MPulse hub, is in the final stages of testing, and its official release date will be announced this quarter. Project 321 will continue to support G2 customers with warranty and service needs.
“The JLSO team is pleased to see our designs joining the North Arc family of companies. We will continue to collaborate on Project 321 to further grow and expand the business footprint,” said Jake Liles, President of JLSO, Inc. “Our companies are well aligned in that we both focus on customer service, innovative products, manufacturing excellence, and being good stewards of the environment.”
Here is what you need to know:
- Project 321 Inc., a newly created stand-alone Canadian entity, has acquired the Project 321 brand and its hub-related assets;
- Project 321 Inc. has the capacity and ambition to scale into an industry-leading cycling component manufacturer that will focus on OEM, aftermarket, and direct sales;
- A Generation 3 (“G3”) Project 321 hub is currently being tested, and its official release date will be announced this quarter;
- The Generation 2 (“G2”) hub has been discontinued and is no longer available for sale; and
- Existing warranties will be honored, and spare parts and services will continue to be available.
About North Arc Capital Partners
North Arc Capital is a Canadian partnership of capital providers and experienced business leaders that aim to build great businesses with a focus on the advanced manufacturing of proprietary products. It has grown TriggerTech to become an industry-leading component supplier and developed North Arc Precision as an advanced manufacturer of parts and assemblies. North Arc Capital Partners is actively pursuing new opportunities. www.northarccapital.com
About Project 321 Inc.
The Project 321 Holdings Inc. is a newly formed, stand-alone entity that was incorporated to acquire Project 321 assets. It will serve as a platform for growth in the cycling components market for North Arc Capital. www.project321.com
About North Arc Precision
North Arc Precision is a precision manufacturing business with specific expertise in Wire EDM fabrication, CNC machining, and complex assembly processes. North Arc Precision operates out of a 42,000 sqft facility in Mississauga, Ontario and is capable of handling complex manufacturing and assembly projects at an automotive scale. www.northarcprecision.com
About TriggerTech
TriggerTech was founded in 2013 and has become an industry leader in rifle and crossbow triggers. The company pioneered and patented its zero-creep technology and has become a supplier to major OEMs, Custom Builders, Military & Law enforcement operators, and various aftermarket channels. TriggerTech also supplies triggers to support Ukraine’s war effort, something that is particularly meaningful given the high concentration of employees with Ukrainian heritage that the company proudly employs. www.triggertech.com
About JLSO, Inc.
JLSO has sold all bicycle hub assets, including the Project 321 brand, to Project 321 Inc. JLSO will continue to operate its machine shop in Bend, Oregon, and will continue to make its automotive accessories. JSLO, Inc. will remain tooled up for hub production and will support Project 321 with new product development and as a U.S.-based backup supplier.
“To Our Dear Customers, Friends and Family,
How do you begin to say goodbye to something that has been a part of your daily life for nearly seventeen years? For us, it starts with THANK YOU.
Thank you to our customers. Who helped us to grow an unknown brand of quality American-made products from an idea in a garage to an international brand. Your trust and support mean everything to us.
Thank you to our employees, past and present. We could never have made it this far without a team of people who believed in our vision.
Thank you to all of the friends we have made along the way. We could not have imagined some of the deep and lasting connections that have come from starting and running this company.
Thank you to our families, especially our parents. Without you, we could not have survived our children’s early years!
And thank you to the new owners of PROJECT321. Who has given us the opportunity to transition into a new phase of our lives and to watch the brand we started so many years ago develop in big and exciting ways.
This has been an amazing and unique journey, and we are beyond grateful to everyone who has been part of it.
With Much Love and Gratitude,
-Jake and Sam”
Project 321 History/Timeline
Early Days
Project 321 was founded 17 years ago by Jake Liles in Fresno, California, and initially produced motorcycle gas caps. The foray into bicycle components began in 2005 with the development of Lefty fork adapters. Bicycle hub manufacturing started in 2011, initially utilizing drive rings and pawls sourced from Industry Nine.
Project 321 introduced its magnet-actuated pawl hubs in January 2017 with the launch of the G2 Hub. The G2 was equipped with a class-leading 216 points of engagement and unique optionality for both quiet and loud driver configuration. Overall, the G2 offered a compelling combination of high engagement and low-drag, quickly developing a reputation for outstanding performance and reliability. In late 2017, Jake moved the shop from Fresno to Bend, Oregon. The move enabled him to increase quality and production capacity by bringing nearly all manufacturing in-house. In the years following, Jake and his partner Sam grew Project 321 into an internationally recognized brand with a dedicated following.
G3 Hub and Stan’s
With over five years of experience manufacturing and refining the G2 hub design, Jake was confident that any issue observed in the field with early versions had been addressed with running design changes; the G2 was now tested and proven. True to his nature, Jake got restless and started thinking of a new and improved G3. Around the same time, Stan’s No Tubes approached Project 321 for help developing a rear hub, and Jake went to work on a new design.
Ownership Transition and Moving North
With the launch of Stan’s MPluse hub (which includes several G3 components manufactured by Project 321), the global increase demand for cycling components, and the commitments of a growing family, Jake and Sam started to feel that it might be time to start to look to transition Project 321. Around this time, Jake was introduced to Bryden Richardson, the CEO of a precision manufacturing company that was exploring the idea of designing and manufacturing bicycle hubs.
It’s funny how the world can work, as they both had exactly what the other was looking for. Jake had a strong brand and a product known for quality and reliability. Bryden and his team had experience scaling businesses in precision manufacturing (North Arc Precision) and sporting goods components (TriggerTech). TriggerTech was founded in 2013 and has grown to become an industry-leading supplier of trigger components to OEMs, aftermarkets, and consumers in the firearms and crossbow space. To meet the growing needs of TriggerTech, North Arc Precision was created to act as a stand-alone precision manufacturing business with specific expertise in Wire EDM fabrication, CNC machining, and complex assembly processes. North Arc Precision has the capacity and expertise to meet Project 321’s growing manufacturing needs on day one.
Research quickly turned to negotiations, and after a few months, Project 321 Inc. was formed as a stand-alone entity to acquire the brand and hub-related assets from Jake and Sam’s holding company, JLSO Inc.
What’s Next?
Project 321 is moving all operations to a 42,000-square-foot manufacturing facility in Mississauga, Ontario. From Canada, Project 321 will have the capacity and ambition to scale into an industry-leading cycling component manufacturer that will supply OEMs, wholesalers, wheel builders, retail shops, and consumers directly.
A brand-new G3 hub is currently in is in the final stages of testing, and its official release date will be announced this quarter.
G2 hub production has been discontinued, but service and spare parts will continue to be available. All existing warranties will be honored from the new Canadian headquarters.
We are excited to bring hub manufacturing to Canada and invite you to sign up to follow our story. We look forward to working with you!
-The Project 321 Team
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