New Delhi, Sep 17 (IANS): To further cement its position in the fast-growing premium cycling segment in India, Hero Cycles has acquired Firefox Bikes, a company statement said on Thursday.

"The promoters have divested their entire equity stake in Firefox Bikes in an all-cash transaction to Hero Cycles," the statement said.

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 deal includes Firefox brand of cycles, accessories and spares along with exclusive distribution rights of 'Trek' and other global brands.

Firefox, which has an established presence pan-India through a network of 160 outlets, has been growing at a 3-year compound annual growth rate of 35 percent in revenue.

"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," said Hero Cycles chairman and managing director Pankaj Munjal.

"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," he added.

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."

"Hero has committed in investing in expanding and upgrading our product range which will hit the markets soon. The acquisition will also translate into uplifting the customer experience at our stores through training of our existing distributor network by Hero Cycles," he added.

As part of the deal, Singh will continue to lead Firefox Bikes post the acquisition as the CEO.

At present, 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.