Hero Cycles, the world’s largest bicycle maker has announced the acquisition of Firefox Bikes Pvt. Ltd as it seeks to tap the potentially lucrative market for premium cycles.
Firefox bikes is one of the licensees for properties such as Looney tunes, Superman, Batman etc. and has recently entered licensing agreement with Swiss Military.
While Hero did not disclose the size of the deal, people with knowledge of the matter said it had paid Rs.150 crore in an all-cash deal, which happens to be the largest transaction in the bicycle market.
In a statement, Pankaj Munjal, Managing Director of Hero Cycles said that the acquisition will help the company expand its presence in all major categories of bicycles in India. “The aim is to provide our customers with world-class products in every price range as per their fast-evolving tastes and requirements,” Munjal said.
As per the agreement, Firefox Bikes will remain a separate business entity post the acquisition. The deal includes the Firefox brand of bicycles, accessories and spares along with exclusive distribution rights of ‘Trek’ and other global brands. The promoters of Delhi-based Firefox Bikes have divested their entire equity stake in the company.
Shiv Inder Singh, Founder and Managing Director of Firefox Bikes, will, however, continue to lead it after the acquisition as its Chief Executive Officer.
Currently, Firefox sells over 70 different models of bicycles and 25 Trek models through a network of 160 company-owned and franchise outlets. Firefox also has tie-ups with international brands such as Tern, Shimano, Saris, Finish Line, Kryptonite, Super-B and Slime.