On Thursday, Hero Cycles, the world’s largest bicycle maker run by Hero Motors Group has acquired Firebox Bikes, India’s largest premium bicycle brand in all-cash transaction. The financial terms of the deal has not been disclosed.
With a pan-India presence through network of 160 outlets, the company Firefox has been growing at a 3-year compound annual growth rate of 35% in revenue. Currently, it sells more than 70 different models of Firefox bikes and 25 Trek models of bicycles. It has partnered with international brands like Tern, Shimano, Saris, Finish Line, Kryptonite, Super-B and Slime.
As part of the agreement, both the companies have mutually agreed that Firefox Bikes will continue having its distinct brand identity and remain a separate business entity after the acquisition deal closes. The deal consists of Firefox brand of cycles, accessories and spares as well as exclusive distribution rights of ‘Trek’ and other global brands.
Pankaj Munjal, chairman and managing director of Hero Cycles, “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 realize its true potential and further its growth potential in the market.”
Munjal added, “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. The aim is to provide our customers with world-class products at every price range as per their fast evolving tastes and requirements.”
Firefox Bikes founder and managing director Shiv Inder Singh said, “This acquisition will help Firefox to penetrate further into the Indian market. This deal will also help Firefox to expand its marketing visibility and acquire an aggressive approach in reaching out to our prospective customers.” Singh will continue to head Firefox Bikes post the acquisition as the CEO.