Hero Cycles acquires Firefox Bikes in all-cash transaction

NEW DELHI: Hero Cycles on Thursday 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.

Financial details of the deal were not disclosed.

“Through this acquisi- tion, 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 CMD Pankaj Munjal said in a statement.

The aim is to provide customers with world-class products at every price range according to 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.

“The acquisition will help Firefox to penetrate further into the Indian market,” Firefox Bikes’ founder and MD Shiv Inder Singh said.

“This deal will help Firefox expand its marketing visibility and acquire an aggressive approach in reaching out to prospective customers,” he added.

Hero has committed to investing for expand and upgrade Firefox’s product range, which will hit markets soon, he added.

As part of the deal, Singh will continue to lead Firefox Bikes post the acquisition as CEO.