According to media reports in Taiwan, leading global bike manufacturer Giant Group is looking to invest US$20 million in the power meter and indoor cycling brand Stages Cycling.
Giant reportedly held an interim board meeting last week – with a strategic investment in Stages expected to be made via Giant’s subsidiary Gaiwin BV, which is based in the Netherlands.
Of the US$20 million investment – US$6.5 million is being used to acquire 32.5% of the common stock of Stages Cycling, with US$13.5 million to acquire the company’s convertible corporate bonds.
Giant is said to be optimistic about the long-term prospects for indoor cycling. This is despite economic headwinds in 2023 and a more challenging, post-Covid environment for companies in the sector.
Giant hopes to take advantage of brand synergies with Stages for both indoor and outdoor cycling. A strategic investment in Stages would help in its development of a wider bicycle ecosystem, encompassing indoor training bikes, power meters and other accessories.
Media reports add that Giant aims to… ‘effectively integrate the manufacturing and market channel resources of both parties, in order to maximize increase profitability.’
Established more than 10 years ago, the Stages brand sells in more than 55 countries and over 7,000 bike stores. The company was founded by Jim Liggett and his brother Scott in 2009.
Stages has a number of products in its portfolio. Power meters (launched in 2012) and the Stages Indoor Bike (SC Series studio bikes launched in 2015) are among the most well-known product offerings.
According to the company, its studio bikes support over 110 million rides per year – with a strong footprint in the North American market and a cloud service supplied to a number of large chain gyms.
Other accessories in the company’s portfolio include: Stages SB20 Smart Bikes, Stages Dash GPS bike computers and StagesPulse heart rate monitors.
