Halfords has expanded its bike offering with its latest acquisition of Tredz and Wheelies Direct for £18.4m.
Both South Wales based etailers were founded by brothers Keith and Michael Jones, originally selling bikes in a store in Swansea in 1989. Tredz sells premium bikes, cycling parts, accessories and clothing, while Wheelies is the UK’s largest provider of parts and bikes for insurance companies.
Halfords’ partnership is likely to bring growth to its currently struggling bicycle sector as it has recently suffered from increased competition and slowing sales.
Halfords Chief Executive Jill McDonald noted that its acquisition would also enhance the retailers online presence in this category.
“We continue to believe in the long-term growth potential of the cycling market. We look forward to working with them [Tredz and Wheelies] to develop and grow the businesses further” McDonald added.
“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” Keith Jones said.
Tredz and Wheelies currently employ 250 people and reached an annual profit of £2.4m last year, from a total revenue of £32m.