Detroit — A Motor City bicycle manufacturer has been acquired by an Arkansas-based cycling group.
Detroit Bikes LLC has sold off its assets, including its brand, inventory and 50,000-square-foot factory to Cardinal Cycling Group, according to a Thursday news release.
Zak Pashak, Detroit Bikes founder, will remain a partner in the new company and continue in a factory management and business development role, it notes.
Detroit Bikes will continue normal operations while it executes planned 2022 production and develops an expanded product range that will launch in the second half of 2022.
Cardinal Cycling Group, the release notes, will further develop the “USA Made” steel range and expand urban eBike offerings.
“From the moment I saw the Detroit Bikes launch video in 2014, I have loved the Detroit Bikes brand,” Tony Karklins, CEO of Cardinal Cycling Group said in a statement.
“Zak and I became friends over the years as we have been on a similar path of re-shoring bicycle manufacturing, getting more people on bikes and building brands that matter,” he said. “We are thrilled to take the reins at Detroit Bikes and commend Zak for building a passionate and iconic brand.”
Pashak reflected on the success of the past decade and said he’s happy to turn Detroit Bikes over to Karklins and his team.
“The recapitalization of the business along with Cardinal’s industry knowledge and connectivity is exactly what Detroit Bikes needs,” he said. “I look forward to being part of the team and helping take Detroit Bikes to the next level.”
Other terms of the deal were not immediately available late Thursday.
Founded in 2014, Detroit Bikes operates the largest steel bicycle manufacturing facility in the country and one of the largest complete bicycle assembly facilities.
Pashak, the release notes, led the way for re-shoring bicycle manufacturing when he moved from Canada to America and set up shop in Detroit.
Detroit Bikes produces up to 10,000 bikes a year, Pashak has said. In the summer of 2020, it began assembling copies of Schwinn’s classic Collegiate cruiser.
Cardinal Cycling Group was founded by Karklins and Martial Trigeaud in 2020. The cycling investment and management company focuses on premium brands that own their production.
Earlier this year, Cardinal Cycling Group acquired the TIME Bicycle brand and European factory from Groupe Rossignol.