Halfords racing to the front of cycling pack with £18m rivals’ buy-out
Chain has bought two businesses, including the UK’s biggest supplier of bikes to insurers
HALFORDS is aiming to race to the front of the cycling pack after taking over two rivals yesterday for £18.4million.
The chain has bought online bike seller TREDZ and WHEELIES, the UK’s biggest supplier of bikes to insurers.
The companies, founded by cycling enthusiasts Keith and Michael Jones, made £32million in sales last year.
Halfords is hoping the deal will ramp up its online offering after a sales wobble despite signing up Tour de France hero Sir Bradley Wiggins as an ambassador.
Tredz sells brands including GIANT, SPECIALIZED and AVID.
Halfords chief exec Jill McDonald said yesterday she continues to “believe in the long-term growth potential of the cycling market”.
Keith Jones said it was time “for us to work with a partner on the next phase of growth”.
He added: “Halfords is exactly what we were looking for.
“With the support and resources of a large group, we look forward to building on what we have achieved so far.”
Halfords revealed last September cycling sales were down 11 per cent in the eight weeks to August 28 year on year, its first slow-down in the division since early 2013.
Sales recovered but were only up 1.9 per cent in the fourth quarter of the last financial year.
Investment expert Russ Mould, of AJ BELL, said: “Halfords has underlined the importance of cycling to its business.
“The two firms are strong and complementary additions to its existing business and will extend its online presence.”