Giant acquires Stages Cycling brand and assets, months after suing power meter and indoor bike company for £16 million

Five months after suing Stages Cycling for £16 million worth of unpaid invoices and already manufactured products, and recruiting four of its top executives, Giant has today announced that it has acquired the US-based power meter and indoor bike company’s brand and assets, a move the Taiwanese manufacturer says will “enhance” its indoor and outdoor cycling capabilities, while helping propel Stages’ “fantastic” brand into the future.

In April, it was first reported that Stages – perhaps best known for its power meters, which helped move that particular corner of the cycling market in a more budget-friendly direction when they were introduced in 2012 – had ceased operations and laid off all of its staff, as UK consumers were reassured that warranty claims would be covered by its distributor Saddleback.

Stages initially stopped supplying orders to suppliers and then ceased shipping to customers, the brand’s website showing most products as being unavailable at the time, although various models were still in stock at Saddleback.

> Stages has ceased operations and laid off all its staff, say reports, while UK consumers reassured that warranty claims will be covered

Later that same week it emerged that AIPS (Advanced Intelligent Perpetual Solutions), a Giant subsidiary established in 2020 to develop and manufacture cycling technology including power meters, had filed a lawsuit against Stages in Oregon in February, alleging that the US-based company owed over £11 million from 161 unpaid invoices between June 2022 and January 2024, attributed to power meters, exercise bikes, other products and parts, and storage and shipping fees.

The complaint said that Giant also produced and is storing products that Stages ordered, valued at another £5.4 million.

At the same time, at least four high-ranking executives at Stages confirmed that they were moving to Giant, including Pat Warner, Stages’ former senior vice president of product research, who joined Giant as vice president of product research and design, and Paddy Murray, who is now Giant’s VP of global sales and marketing after serving in a similar capacity at Stages.

> Giant sues Stages Cycling and recruits four top executives from the now-shutdown US power meter brand

Then in July, another Giant subsidiary, Spia Cycling, made an initial stalking horse bid for Stages worth $20 million following the brand’s demise. Giant, in fact, had already shown interest in purchasing a one-third share in the ill-fated company last year, although negotiations fell through.

The company’s stalking horse bid for Stages meant that any rivals to Spia’s bid would have to place a minimum $21.5 million competing bid, as well as stump up for a $500,000 minimum overbid charge and a break-up fee, with the deadline for offers set for 1 August.

And on Thursday, former Stages executive Murray confirmed Spia Cycling has successfully acquired Stages’ brand and assets, a move Giant’s global sales and marketing executive says will “propel this fantastic brand into the future with the resource and support of the world's largest bike manufacturer”.

According to Giant, Spia purchased the key assets of the Stages Cycling brand from its parent companies, some of which filed for Chapter 11 bankruptcy protection in June (which allows the debtor to reorganise their business in order to pay creditors over time), including the brand’s intellectual property, manufacturing facilities, product lines, and limited inventory.

> Giant bids to buy assets of bankrupt power meter brand Stages for $20 million

“We are thrilled to integrate Stages Cycling’s assets into our organisation,” Spia’s president Donald Yu said in a statement announcing the Giant subsidiary’s expansion into the commercial fitness sector and plans to “swiftly integrate” Spia’s assets into its operations.

“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.”

Giant also noted that the acquisition supports the manufacturer’s desire to create what it calls a “comprehensive indoor/outdoor cycling ecosystem”, enhance its cycling data capabilities, and enter the commercial fitness market, in which it has been manufacturing products for other brands for three decades.

“We’re thrilled about the opportunities this acquisition presents and the benefits it will bring to Stages Cycling’s dedicated customers,” Murray added.

“Our priority is to ensure a seamless transition while revitalising 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.”

> Giant’s profits slashed by 17% and sales down 13% for first half of 2024 – but company expects “gradual” improvement as inventory levels return to normal

Last month, Giant reported that its pre-tax profits slumped by 17 per cent during the first half of 2024, with sales down by 13 per cent – though the Taiwanese manufacturer nevertheless insisted that it expects its financial situation to “gradually” improve towards the end of 2024 as inventory issues that have plagued the bike industry in Europe and North America begin to normalise.