Eyeing premium segment, Hero Cycles acquires Firefox Bikes
Girja Shankar Kaura
Tribune News Service
New Delhi, September 17
Ludhiana-based Hero Cycles today said that it had acquired Firefox Bikes, India’s largest premium bicycle brand, for an undisclosed sum as part of its strategy to boost 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, which is the world’s largest cycle manufacturing company by volumes, in an all-cash transaction.
The 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 deal includes Firefox brand of cycles, accessories and spares along with exclusive distribution rights of ‘Trek’ and other global brands. The acquisition will not just aim at consolidating Hero’s fledging market share, but is also aimed at expanding the horizons for Firefox Bikes.
The acquisition will see transfer of key technology and rich global experience garnered by Hero Cycles over the past 60 years to Firefox Bikes which is often credited for creating the premium range in the Indian cycling market. Firefox, which has an established presence pan-India through a network of 160 outlets, has been growing at a three-year CAGR of 35% in revenue.
Pankaj Munjal, chairman and MD, Hero Cycles, said, “This acquisition is one of the most significant developments in the history of Hero Cycles. We are proud to have Firefox Bikes, which is one of the most recognised brands in the premium cycle segment, as part of the Hero Cycles family.” “Post the acquisition, Firefox will continue to remain a young and dynamic brand with an international appeal. We at Hero Cycles have invested in Firefox only to help it realise its true potential and further its growth potential in the market,” Munjal said.
“Through this acquisition, Hero Cycles will further expand its presence in all major categories of bicycles in India through its brands such as Hero Cycles, UT, Firefox and UT Edge,” he said.
