The Hut Group, which is set to launch an IPO this year, has snapped up online cycling accessories business from private equity firm Encore Capital for an undisclosed sum.

The acquisition is part of the group’s strategy to expand its product categories and is supported by its recent equity fundraising in which River Island owners the Lewis family joined its impressive roster of investors.

The Hut Group, which is chaired by former Matalan boss Angus Monro, counts Sir Terry Leahy, Sir Stuart Rose and Balderton Capital among its backers. (PBK) will join the retailer’s lifestyle division, which includes MyProtein and MyVitamins. The retailer said its new acquisition would generate further product and customer cross-selling opportunities.

It is planning to expand PBK’s range to include triathlon, which it said was a high growth and complementary product category.

The Hut Group chief executive Matthew Moulding said: “Following a review of the sector we identified PBK as the outstanding brand for acquisition given its heritage, the breadth and longevity of its supplier relationships and its international customer reach.

“We are very excited about the prospect of combining the specialist know-how of PBK with The Hut’s ecommerce expertise to compete in a sector growing at 15% per annum.”