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ASI buys Phat Cycles and Sterling bike brands

Published March 16, 2015

PHILADELPHIA (BRAIN) — Advanced Sports International has bought Phat Cycles, the California-based beach cruiser brand. The purchase also includes the Sterling bicycles brand.

Pat Cunnane, CEO of Advanced Sports, said, "I've been in conversation with David (Menahem, the owner of Phat Cycles) for a long time. We'd meet every year, and I'd ask, 'Are you ready to have a discussion?' I know David loves Phat and his staff, and I am glad he chose ASI to take the business to the next level."

Menahem, who will continue as a consultant for ASI while the transition is completed, said, "I feel that I am selling the business to a company that has the resources, vision, and commitment to the authenticity of its brands to really allow Phat and Sterling to grow."

"It was important to me that we do a 'seamless' deal because I did not want to disrupt our customers' business in any way," added Menahem.

Menaham operates and will continue to operate Bicycle Discovery shops in Huntington Beach and San Diego.

"I have had the honor of working with some of the best retailers in the industry, and I want to say thank you to each one of them for helping Phat Cycles become a reputable company and a respected brand known for innovative and fun bikes," Menaham said.

ASI said the two new brands fill out holes in its portfolio. Phat will give ASI its first cruiser brand and ASI plans to develop the Sterling brand with a new line of lifestyle, kids and family bikes. ASI's other brands are Fuji, SE, Kestrel, Breezer, and Oval Concepts.

ASI said it will keep Phat's office and warehouse in Southern California, and that the brand's nine employees will be incorporated into ASI's team. Current customers should continue to contact Phat Cycles for Phat and Sterling inquiries at (714) 891-0096 until the transition is complete.

Pat Cunnane (left) and David Menahem.
Topics associated with this article: Mergers, Acquisitions & Investments

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