 "Hero Cycles")
Hero Cycles today said it has acquired Firefox Bikes as part of strategy to cement its position in the fast-growing premium cycling segment in India.
As part of the deal, promoters of the Delhi-based Firefox Bikes divested their entire equity stake to Hero Cycles in an all-cash transaction.
Hero Cycles, however, did not disclose financial details.
"Through this acquisition, Hero Cycles will further expand its presence in all major categories of bicycles in India through its various brands such as Hero Cycles, UT, Firefox and UT Edge," Hero Cycles Chairman and MD Pankaj Munjal said in a statement.
The aim is to provide customers with world-class products at every price range as per their fast evolving tastes and requirements, he added.
As part of the deal, Hero Cycles has acquired Firefox brand of cycles, accessories and spares along with exclusive distribution rights of 'Trek' and other global brands.
Both companies have mutually agreed that Firefox Bikes will continue to have its distinct brand identity and remain a separate business entity post the acquisition.
Firefox Bikes' founder and Managing Director Shiv Inder Singh said, "This acquisition will help Firefox to penetrate further into the Indian market. This deal will also help Firefox to expand its marketing visibility and acquire an aggressive approach in reaching out to our prospective customers."
Hero has committed to investing in expanding and upgrading Firefox's product range, which will hit the markets soon, he added.
As part of the deal, Singh would continue to lead Firefox Bikes post the acquisition as the chief executive officer.
The premium cycle segment in India has been growing at 25 per cent CAGR over the past many years. It has emerged as one of the fastest growing segments in the market by clocking sales of more than two lakh units a year.
Currently, the company sells over 70 different models of Firefox bikes and 25 Trek models through a network of 160 company-owned and franchise outlets.
It also has tie-ups with international brands such as Tern, Shimano, Saris, Finish Line, Kryptonite, Super-B and Slime.
