Hero Cycles acquires Firefox Bikes

Hero Cycles has announced that it has acquired Firefox Bikes. As part of the deal, 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. Mr. Shiv Inder Singh, founder and managing director of Firefox Bikes, will continue to lead Firefox as the Chief Executive Officer.

The promoters of Firefox Bikes have divested their entire equity stake in the company in an all-cash transaction to Hero Cycles. The deal includes Firefox brand of cycles, accessories and spares along with exclusive distribution rights of Trek and other global brands.

The move is expected to help Hero increase its presence in the premium segment of bicycles, which is growing at rate of 25%. More than 2 lakh units are sold every year in this segment.

Currently, Firefox sells over seventy different models of Firefox bikes and twenty-five 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. Hero claims that it will be increasing the number of Firefox stores in the country.