In a major expansion in to the premium cycles segment in the country, Hero Cycles on Thursday announced acquisition of Firefox Bikes as part of strategy to cement its position in the fast-growing premium cycling segment in India.
Firefox Bikes which is the largest brand in the country in the premium cycles segment, will continue to have a distinct brand identity and remain a separate business entity. 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. The companies, however, did not disclose the transaction details.
“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,” Hero Cycles Chairman and MD Pankaj Munjal said in a statement.
Firefox Bikes’ founder and Managing Director Shiv Inder Singh said that the 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,” he said.