New Delhi, 17^th September 2015: Hero Cycles, world’s largest bicycle manufacturer by volume, today announced its acquisition of Firefox Bikes in an all-cash transaction, India’s largest premium bicycle brand, as part of its strategy to further cement its position in the fast-growing premium cycling segment in India. 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.

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 last 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 3-year CAGR of 35% in revenue.

Speaking about the acquisition Mr 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 extremely 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. It is a delightful moment for us looking at the immense possibilities that lie in front of both these brands which have distinct branding identities. We are confident that our customers and even dealers would appreciate the infusion of Hero’s hard-earned trust, credibility and world-class manufacturing prowess into a young and vibrant brand such as Firefox.”

“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. 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” added Mr Munjal.

Speaking on Firefox’s journey through the last decade, Mr Shiv Inder Singh, founder and managing director at Firefox Bikes, said, “We at Firefox were fortunate to have entered the cycling market at a time when Indian consumer had just started to expect more from their cycles. It was enriching and an exciting role to play where we not just created the premium cycle segment in India, but also introduced the next generation of performance and recreational cycles to the Indian consumer. We are very happy today that our effort into creating this segment has been recognised by market leader Hero Cycles and have now decided to take our young and an extremely vibrant brand to the next level.”

As part of the deal, Mr Shiv Inder Singh will continue to lead Firefox Bikes post the acquisition as the Chief Executive Officer.

Currently, Firefox sells over 70 different models of Firefox bikes and 25 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.

The investments by the Ludhiana-based cycling giant, which produced 6 million cycles last year, will also help Firefox further increase its dominance in the premium cycle market through expansion of product portfolio, creating better customer reach through greater market visibility and exposure and introducing it to the latest global innovations being pioneered by Hero.