Halfords spends more than £18m to acquire South Wales online cycle businesses Tredz and Wheelies
Halfords has acquired online cycle businesses Tredz and Wheelies as it expands within the cycling market.
Halfords, a Leading retailer in IRUK Top500 research
, has paid an initial £18.4m, and will pay more depending on Tredz' performance in the year to February 28 2017.
Tredz sells premium bicycles, parts and accessories, while Wheelies provides replacement bicycles for insurance companies. The two turned over about £32m in the year to February 29, up from £24m the previous year
Halfords says the purchase improves its position in the online market for premium bikes. The retailer has previously seen fast multichannel growth in the cycling segment of its business though in its latest half-year figures
it reported a "disappointing" slowdown in sales in this area. At the time, chief executive Jill McDonald said there were "plenty of reasons" to believe the market would grow in the long-term.
Today she said: "We are delighted with this acquisition, which we believe is a strong and complementary addition to the group, extending our presence in the online market for premium bikes, parts, accessories and clothing. We continue to believe in the long-term growth potential of the cycling market. Keith and his management team have done a fantastic job of building a successful online retail operation and we look forward to working with them to develop and grow the businesses further."
The two businesses were founded by Keith and Michael Jones. Keith Jones will continue to lead the businesses, which employ about 250 people, under their new management.
Keith Jones, group managing director of Tredz and Wheelies, said: "We are very proud of the businesses that we've grown from a small shop twenty seven years ago into a strong operator in the premium cycling market, with a team of over 250 people.
"However, the time has come for us to work with a partner on the next phase of growth. Halfords is exactly what we were looking for. With the support and resources of a large group, we look forward to building upon what we have achieved so far to drive long-term growth."