I definitely didn’t expect this one, but thinking back, there were clues that I should have picked up on… My lack of intuition aside, the press release below explains the gist of what’s happening with Wheels Of Steel (Source’s parent company) and Sparky’s Distribution (Shadow/Subrosa’s parent company). Honestly, the press release left me with a lot of pragmatic questions, so I reached out to Rich Moore at Source and we jumped on a quick call to give the backstory. Most of it isn’t for public consumption, but I can confirm a few things: – It is a merger. Not a buyout. Not a bail out. – Sparky’s was in good standing as a business, which made the overall deal easier. The idea for a merger came from Ron Bonner over a year ago as he was thinking of the future of how consumers purchase products and the infrastructure needed to keep pace. Source has most of this “stuff” in place already and plugging into their program versus building his own was appealing. – Sparky’s will remain Sparky’s. It will still be based in the Orlando area and will handle design, marketing, team, projects, etc. How their product will be distributed will change. – The goal is to not piss off independent bike dealers. I think everyone loves and cherishes the role IBDs play in our world, so the consideration is paramount. So yeah, that’s pretty much my takeaway. I also texted Ronnie B, but didn’t hear back. I assume he’s pretty busy/overwhelmed today, but even if he doesn’t respond, this is what I know… And yes, I told Ronnie to come do the podcast sooner than later. If I get any more info, you’ll have watch the Unclicked news podcast for an update… Press release below!
Merging to move the industry further.
Two powerhouse BMX entities spanning three countries are merging to navigate the ever-changing Global market and to evolve the way bikes are made and sold around the world. The biggest goal with this new business model is to protect and grow the independent bike dealers while also building on Brand marketing, events, and reinvesting in BMX to grow our sport.
The Sparkys family of brands including The Shadow Conspiracy, Subrosa, Rant, and Shadow Riding Gear, and Sparkys Distribution have merged with Wheels of Steel Inc and their brands Source BMX, Snap Distribution, Stay Strong and Battle Events.
Sparkys Distribution has always had the Independent Bikes Shops backs since the early 90’s when we were founded. The Sparkys staff will remain in charge of all things IBD related and with this evolution will bring an increased support to Sparkys quality dealers. Our new approach brings higher margins, regional and global marketing support, readily available worldwide inventory, smaller minimums, reduced shipping rates and an overall experience that only Sparkys can create.
This could only be achieved by creating something brand new, and the fact that two companies and cultures from around the world came together to achieve this proves that this is the right direction. This new group’s goal is to benefit all aspects of BMX.
Wheels of Steel Inc brings to the table a shared passion for all things BMX, desire for growth and progress in the lifestyle and sport, logistics expertise, multiple shipping locations, software upgrades, global customer base, and the merger will enable the Sparkys Brands to access and share these aspects. They also host some of the biggest contests and jams in BMX.
This merger will allow The Shadow Conspiracy, Subrosa, Rant and Shadow Riding Gear to focus on growing and developing new product ranges, teams, marketing, and new and exciting events. This will also enable our worldwide fans easier access to our products they desire.
Most importantly, all aspects of Sparkys Distribution, Wheels of Steel, and the brands themselves will remain rider owned and operated. With over 500 years of combined BMX experience, and with locations in the U.K., Germany, and the USA, getting our products to wholesalers, shops, and most importantly our worldwide fans will be easier than ever all while giving back and supporting the industry that got us here.
“We grew up riding in UGP clothes and running UGP number plates, so we have always been influenced by Ron and his brands. We carried his brands on the day we opened our first store in 2003 and have had the privilege of getting to know him and his crew well over the years. We have talked openly about the challenges of having a BMX business so when Ron approached us with this idea, it was quickly obvious that we had to find a way to do it. We’re excited for this opportunity and look forward to executing our plans” – Rich Moore/ Wheels of Steel
“In the very early days of Source the main goal for our small crew was to make enough money so that we could go on more trips. As we grew as a company we remained committed to putting back into BMX, knowing how important it is to our sport. It’s been an honor to get to know the crew at Sparkys more through this merger process and to get to know that the passion for BMX is not only a shared past but also a shared vision for the future. BMX needs to be proactive in promoting itself and the market as of late has made that ever harder to achieve. This merger opens more opportunities for BMX on the horizon and I couldn’t be happier to be a part of it.”
– Marc Moore/ Wheels of Steel
“The past 4 years since covid, everything in business has changed completely. Supply chain, MOQ, Price points, Staff cost, Margins, along with increased inflation, the list goes on. It has gotten to a point that unless we as an industry stop sitting on our hands and make massive evolutions in our business models, BMX as a lifestyle cannot thrive unless we change the way we do things. This is why we have chosen to be one of the first to set out to help BMX and our dealers for decades to come.” – Ronnie Bonner/ Sparkys Brands
“We’re absolutely stoked about this merger and the exciting potential it brings for our brands’ product development. By combining our expertise, we can dive even deeper into creating next-level products that push the sport forward in new and innovative ways. This partnership gives us the freedom to invest in fresh ideas, expand our capabilities, and ensure riders everywhere have access to the best BMX products on the market. You can’t use up creativity. The more you use, the more you have.” – Greg Lanthorne/ Sparkys Brands
“This is an amazing opportunity as far as our brands go. The Shadow Conspiracy, Subrosa have been staples in BMX for 21 and 18 years respectively and this will provide our biggest opportunities yet. We are looking forward to building on the success of Shadow Riding Gear and Rant BMX as well. A lot more of the fun stuff like travel and videos, but this new path also enables us to give back even more by hosting events and jams and supporting shops. I’ve personally been involved in BMX for 40 years now, and I want nothing more than for our industry to thrive and prosper and this is a big step in the right direction.” – Ryan Sher/ Sparkys Brands
