Giant Bicycles has accomplished the acquisition of Stages Cycling for a reported $20.1 million, simply months after submitting a lawsuit in opposition to the model.
The transfer, which incorporates all the Stages property and mental property, was accomplished by way of one among Giant’s subsidiary firms SPIA Cycling Inc.
Giant’s VP of Global Sales and Marketing, Paddy Murray, introduced the transfer in a publish to LinkedIn, saying he and his workforce are “desirous to propel this improbable model into the longer term,” including “The acquisition will help the Giant Group’s imaginative and prescient to create a complete indoor/outside biking ecosystem, improve its biking information capabilities, and enter the business health market, the place it has a 30-year historical past of producing for different manufacturers. SPIA Cycling Inc. plans to swiftly combine the Stages Cycling property into its operations.”
The transfer comes following a protracted interval of on-and-off negotiation between the 2 manufacturers.
In early 2023, Giant filed a discover saying that by way of one other of its subsidiaries, Gaiwin US I Investment Inc, it had agreed on a deal to amass 32.5% of the corporate for $20 million, however months later, the deal fell by way of.
Bicycle Retailer reviews that one other subsidiary of Giant, AIPS Technology, later filed a lawsuit in opposition to Stages Cycling in February for the sum of NT$454 million (£10.5m at at this time’s change) for unpaid invoices.
Then in April, Stages Cycling ceased operations, and amid the shutdown, 4 of Stages Cycling’s high executives moved to Giant. Among them was Murray, who switched from VP of world advertising at Stages to turn out to be Giant’s VP of world gross sales and advertising. Pat Warner, then senior vp of product growth, turned vp of product R&D at Giant Manufacturing, and two engineers Eric Golesh and Andy Lull additionally joined.
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Soon after, Stages’ mum or dad firm, Foundation Fitness filed for Chapter 11 chapter, a type of chapter that allows help whereas enterprise operations can proceed comparatively uninterrupted. Bespoke bike-building fanatics might recall Parlee Cycles not too long ago underwent the identical course of.
Cyclingnews understands Foundation Fitness stays in Chapter 11, with some $32 million owed to collectors, amongst that are Cycling Sports Group and Backcountry.com.
The bid that led to at this time’s acquisition by SPIA Cycling Inc originated in July, as reported by Cycling Weekly. The subsidiary made what’s often called a ‘stalking horse’ bid, which basically defines the primary bid made on a bankrupt firm’s property. The bid is usually chosen by the bankrupt firm itself in session with collectors and is then used to determine a minimal value for the property, thus avoiding lowball presents.
Potential opponents have been set a deadline of August 1, and within the absence of any extra bids, a U.S. chapter choose authorized the SPIA Cycling Inc takeover.
“We are thrilled to combine Stages Cycling’s property into our group,” stated Donald Yu, President of SPIA Cycling Inc, within the model’s announcement. “This acquisition aligns with our strategic targets and enhances our capabilities in each indoor and outside biking. We are dedicated to leveraging these property to drive innovation and ship larger worth to our clients and stakeholders.”