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Hero Cycles has announced the acquisition of MIFA, a German bicycle manufacturer, for €100 million (approximately ₹800 crore).
“The partnership will allow both companies to synergise their operations and respective strengths, to provide a powerful combination in the global bicycle industry,” said Hero Cycles in a statement.
MIFA makes bicycles for the mass market segment in Europe with its products being sold in retail chains such as Aldi and Metro.
The acquisition will also allow Hero Cycles to access MIFA’s Electronic Drive Unit (EDU) technology used in e-bikes.
“Not only would Hero Cycles provide a manufacturing base to MIFA, but also introduce high quality bikes to the Indian market using MIFA’s engineering expertise,” said Pankaj Munjal, Co-Chairman and Managing Director, Hero Cycles, in a statement.
He added that the company will keep looking out for more acquisition and partnership opportunities across the globe.
“The milestone of signing definitive agreements with MIFA has been achieved after long negotiations over the last 12 months. It is a complex transaction structure and needs several approvals in Germany and we are hopeful of closing the transaction in about six months,” said Munjal.
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