Halfords has acquired premium bikes and accessories etailers Tredz and Wheelies as it steps up efforts to grow its online presence.
The car parts and cycling retailer has paid a total of £18.4m to purchase the two online retailers, which will continue to trade as standalone businesses following the deal.
Tredz and Wheelies, sold by founders Keith and Michael Jones, specialise in premium bikes and cycling parts, accessories and clothing. The two South Wales-based businesses employ around 250 people.
Halfords chief executive Jill McDonald described the acquisition as a ”strong and complementary addition to the group” that will ”extend Halford’s presence in the online market”.
She said: ”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.”
From a customer and supplier perspective the businesses will continue to be led by Keith Jones and the existing management teams.
The initial cash consideration of £18.4m has been settled from Halford’s existing borrowing facilities and there may be an additional element of deferred consideration payable in 12 months, dependent upon the financial performance of Tredz in the year ending February 28, 2017.