In a significant move within the cycling industry, Mike’s Bikes, a prominent Northern California bike retailer with a location in Berkeley, has been acquired by Pon Holdings, a Netherlands-based conglomerate that owns a portfolio of well-known bicycle brands including Santa Cruz and Cervelo. This acquisition marks a new chapter for Mike’s Bikes, a chain with 12 stores across Northern California and a long-standing presence in the Berkeley cycling community.
Pon Holdings’ acquisition of Mike’s Bikes signals their strategic intent to expand their retail footprint in North America, specifically targeting leading specialty retailers in key markets. According to a company statement, this acquisition will allow Mike’s Bikes to operate independently while leveraging the resources and stability of a large international corporation.
Alt text: Mike’s Bikes storefront in Berkeley, California, showcasing a variety of bicycles and branding.
Ken Martin, CEO, and Matt Adams, president, the former owners of Mike’s Bikes, will remain at the helm, ensuring continuity in the day-to-day operations and preserving the company culture that has contributed to Mike’s Bikes’ success. Both Martin and Adams have emphasized to employees that Pon Holdings is keen on maintaining the current business model and operational independence of Mike’s Bikes. Partner Mike Gabrys, who was not active in daily operations, also sold his shares in the deal. The financial details of the acquisition have not been disclosed to the public.
In an internal video communication, Martin reassured employees that the acquisition would not lead to significant changes. “Nothing is going to change around here. They like who we are and what we are and our culture and that’s what they want,” Martin stated. Adams further clarified, “We were not purchased by Santa Cruz or Cervelo; We are under the same holding company (as those brands)… we are still going to be mailing checks to Santa Cruz for our bikes and unfortunately we are not going to be getting any more special allocation of bikes than we already get.” This statement underlines the intended operational independence of Mike’s Bikes from Pon’s bike brands.
Currently, Mike’s Bikes stocks Santa Cruz and Gazelle bikes, but not Cervelo. Martin indicated that there is no obligation to increase the presence of Pon-owned brands in their stores. “Only if we want to. Pon doesn’t force any of its companies to do business with each other … it remains entirely our decision,” he explained. Specialized Bicycles remains a primary brand for Mike’s Bikes, representing a significant portion of their sales.
While Martin didn’t explicitly confirm previous acquisition interest from brands like Trek and Specialized, he did mention, “This was a long process involving several parties along the way.” He highlighted the strategic alignment with Pon Holdings, stating, “Pon is a great company. This isn’t just about the money, it’s about partnering with someone who has same values as us, that allows us to remain independent and run the business, and provide the resources to get us to the next level.”
Martin further elaborated on the decision to partner with Pon in the employee video, emphasizing the desire to avoid private equity or acquisition by a direct vendor competitor. “We did not want to go private equity, we did not want to be acquired by a vendor like a Specialized or a Trek. That’s why this is different: Because it’s not a vendor acquiring us, it’s a company that also happens to own vendors that is acquiring us. I think the best way to remain true to what we are and what we built is to have partner that owns the company that allows us to continue to build on what we’ve been doing all these years.”
Alt text: Interior view of Mike’s Bikes Berkeley, showcasing bike displays and service area, emphasizing a customer-focused bike shop environment.
Mike’s Bikes has consistently been recognized as a leading independent bicycle retailer in the U.S. It was featured in Bicycle Retailer and Industry News’ “Big BRAIN Ten” list, solidifying its position among the top 10 largest independent specialty bike retailers nationwide. While many other large retail chains have been acquired in recent years, often by Trek Bicycle, Mike’s Bikes has chosen a different path by joining Pon Holdings.
Founded in Marin County in 1964 as a Schwinn dealer, Mike’s Bikes has grown to encompass 12 locations, including the Berkeley store, serving communities across Northern California from Petaluma to San Jose. Ken Martin, then an employee, and Mike Gabrys acquired the business in 1998 from Dave Kaplan, with Matt Adams joining as an equity partner six years later.
Pon Holdings, with roots dating back to 1867 as a general goods and bicycle retail store in the Netherlands, has evolved into a global company with a diverse portfolio. Initially focused on importing and distributing automobiles, including brands like Opel and Volkswagen, Pon remains family-owned and employs over 13,000 people worldwide.
Beyond Santa Cruz and Cervelo, Pon’s extensive bicycle division includes brands like Gazelle, Focus, and Urban Arrow, as well as ownership or rights to Raleigh and other European bike brands. They also own BBB Cycling parts and accessories, bike rental and sharing services, and a retail store in Amsterdam called Ride Out. Pon is recognized as one of the top five largest bicycle manufacturers globally. Their automotive division, indiGO group, operates luxury car dealerships across several U.S. markets, featuring brands such as Porsche, Lamborghini and Rolls-Royce.
Conclusion
The acquisition of Mike’s Bikes by Pon Holdings represents a significant development in the North American bicycle retail landscape. For cyclists in Berkeley and throughout Northern California, Mike’s Bikes is expected to maintain its familiar operations and customer service while benefiting from the stability and resources of Pon Holdings. The leadership at Mike’s Bikes remains unchanged, and the emphasis on operational independence suggests a continued commitment to the values and culture that have made Mike’s Bikes a successful and respected retailer in the cycling community. This acquisition highlights the ongoing consolidation within the bike industry, with major players like Pon Holdings expanding their reach across manufacturing and retail sectors.
