Giant Bicycles has completed the acquisition of Stages Cycling for a reported $20.1 million, just months after filing a lawsuit against the brand.
The move, which includes all of the Stages assets and intellectual property, was completed through one of Giant's subsidiary companies SPIA Cycling Inc.
Giant's VP of Global Sales and Marketing, Paddy Murray, announced the move in a post to LinkedIn, saying he and his team are "eager to propel this fantastic brand into the future," adding "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. SPIA Cycling Inc. plans to swiftly integrate the Stages Cycling assets into its operations."
The move comes following a long period of on-and-off negotiation between the two brands.
In early 2023, Giant filed a notice announcing that via another of its subsidiaries, Gaiwin US I Investment Inc, it had agreed on a deal to acquire 32.5% of the company for $20 million, but months later, the deal fell through.
Bicycle Retailer reports that another subsidiary of Giant, AIPS Technology, later filed a lawsuit against Stages Cycling in February for the sum of NT$454 million (£10.5m at today's exchange) for unpaid invoices.
Then in April, Stages Cycling ceased operations, and amid the shutdown, four of Stages Cycling's top executives moved to Giant. Among them was Murray, who switched from VP of global marketing at Stages to become 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.
Soon after, Stages' parent company, Foundation Fitness filed for Chapter 11 bankruptcy, a form of bankruptcy that enables support while business operations can continue relatively uninterrupted. Bespoke bike-building enthusiasts may recall Parlee Cycles recently underwent the same process.
Cyclingnews understands Foundation Fitness remains in Chapter 11, with some $32 million owed to creditors, among which are Cycling Sports Group and Backcountry.com.
The bid that led to today's acquisition by SPIA Cycling Inc originated in July, as reported by Cycling Weekly. The subsidiary made what's known as a 'stalking horse' bid, which essentially defines the first bid made on a bankrupt company's assets. The bid is often chosen by the bankrupt company itself in consultation with creditors and is then used to establish a minimum price for the assets, thus avoiding lowball offers.
Potential competitors were set a deadline of August 1, and in the absence of any additional bids, a U.S. bankruptcy judge approved the SPIA Cycling Inc takeover.
“We are thrilled to integrate Stages Cycling’s assets into our organization,” said Donald Yu, President of SPIA Cycling Inc, in the brand's announcement. “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.”
