Giant Group has acquired 32.5% of Stages Cycling's common stock following a $20 million investment. Bicycle Retailer reports
on January 20 Giant Group's board approved the purchase of 32.5% of Stages Cycling Inc. common stock for the price of $6.5 million and Stages Cycling's convertible corporate bonds for $13.5 million.
Giant has said the purchase follows its strategy to expand within the indoor cycling market, the group said: "Through the integration of indoor and outdoor cycling products, Giant Group can offer consumers with a more comprehensive cycling experience, enabling consumers to enjoy the benefits and pleasures from outdoors to indoors and vice versa, and hence improving the overall quality of the cycling experience.
Through this strategic alliance, Giant Group can further utilize its brand advantage within the professional cycling market and to consolidate both manufacturing and distribution resources to maximize synergies. This, on one hand, increases both product and service values and, on another hand, creates a seamless online and offline cycling ecosystem, thereby accomplishing the goal of future gradual long-term operation performance gains and enabling Giant Group to continue to grow."
The Giant Group has previously manufactured some of Stages' indoor bikes with an expansion in the partnership to assist with the new generation of Dash head units