SPIA Cycling, Inc., a subsidiary of Taiwan-based The Giant Group, has successfully acquired key assets of the Stages Cycling brand from its owner companies, some of which filed for Chapter 11 bankruptcy protection in June.
The company said the acquisition represents a significant milestone for SPIA Cycling, Inc. as it expands its cycling performance portfolio and enters the commercial fitness industry.
“The acquisition will support the Giant Group’s vision to create a comprehensive indoor/outdoor cycling ecosystem, enhance its cycling data capabilities and enter the commercial fitness market, where it has a 30-year history of manufacturing for other brands,” Giant Group said in a media release.
Multiple sources said the transaction was valued at $20.1 million. CyclingNews said the deal follows a long period of on-and-off negotiations between the two brands.
Giant Group initially reported that it had acquired a minority stake in Portland, OR-based Stages Cycling in late January 2023, but according to documents recently filed with the Taiwan Stock Exchange (TSE), the company did not finalize the deal and pulled out of its planned $20 million investment due to an inability to “reach mutual consensus on the terms and conditions of definitive agreements. “
Giant filed paperwork in late January 2023 that it would take a 32.5 percent stake in Stages Cycling, a maker of stationary smart bikes for the commercial gym and home markets and crankarm-based power meters. According to the filing with the TSE at the time, Giant Group’s Board approved the purchase of Stages Cycling’s stock for $6.5 million and the acquisition of Stages Cycling’s convertible corporate bonds for $13.5 million. (See additional coverage below).
It appears the two parties never signed a definitive agreement regarding the investment announced in January.
The U.S. entities of Stages Cycling reportedly sought Chapter 11 protection to address financial challenges and restructure their operations. SPIA Cycling, Inc. said it acquired key Stages Cycling assets, including intellectual property, manufacturing facilities, product lines, and limited inventory, but it appears they already had key assets under the Giant roof—key engineers and management.
CyclingNews reported that four of Stages Cycling’s top executives moved to Giant after Stages Cycling ceased operations. Among them was Paddy Murray, who switched from VP of global marketing at Stages to Giant’s VP of global sales and marketing. Pat Warner, then senior vice president of product development, became vice president of product R&D at Giant Manufacturing, and two engineers, Eric Golesh and Andy Lull, also joined Giant.
“We are thrilled to integrate Stages Cycling’s assets into our organization,” said Donald Yu, president of SPIA Cycling, Inc. “This acquisition aligns with our strategic goals and enhances our capabilities in both indoor and outdoor cycling. We are committed to leveraging these assets to drive innovation and deliver greater value to our customers and stakeholders.”
SPIA Cycling said it plans to swiftly integrate the Stages Cycling assets into its operations.
Murray stated, “We’re thrilled about the opportunities this acquisition presents and the benefits it will bring to Stages Cycling’s dedicated customers. Our priority is to ensure a seamless transition while revitalizing the Stages brand to address both current and future customer needs. This acquisition underscores the Giant Group’s ongoing commitment to growth and strategic expansion.
Image courtesy Stages Cycling
