Hero Cycles has acquired bicycle brand Firefox Bikes in an all cash deal, the company said in a statement on Thursday.
The deal, which further cements Hero's position in the fast-growing premium cycling segment in India, includes Firefox brand of cycles, accessories and spares along with exclusive distribution rights of ‘Trek’ and other global brands.
The two firms have decided that post the acquisition, Firefox Bikes will continue to remain a separate business entity with a distinct brand.
Firefox has a network of 160 outlets and has been growing at a 3-year CAGR of 35 per cent in revenue, the statement added.
BMR Advisors and BMR Legal acted as the transaction partners and legal advisors respectively for Hero Cycles for this deal. Deloitte represented Firefox Bikes as their transaction partners.
Pankaj Munjal, Chairman and MD, Hero Cycles said, “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."
Shiv Inder Singh, Founder and Managing Director at Firefox Bikes, said, "This deal will also help Firefox to expand its marketing visibility and acquire an aggressive approach in reaching out to our prospective customers."
Hero Cycles will also expand the number of Firefox stores in India at a rate of 25 per cent from the existing 160 stores, the statement said, adding that it will also set up a ‘Hero Innovation Centre’ in India aiming to build a hi-tech R&D centre for engineering, innovation and designing of next generation of world-class cycles for India and for international markets.
The centre aims to reduce Hero Cycles’ dependence on import of technology and design elements for its products.