Halfords spends £18.4 million on Welsh bike group

Halfords has further signaled its intentions to bolster its cycling business with the £18.4 million purchase of Tredz and Wheelies Direct.

Though bike sales have been slowing for Halfords, partly down to competition also firming up their bike offering, the business has been investing in its portfolio and says this acquisition shows a long-term ambition for Halfords’ cycle market presence.

Jill McDonald, Halfords’ chief executive said: “We are delighted with this acquisition, which we believe is a strong and complementary addition to the Group, extending our presence in the online market for premium bikes, parts, accessories and clothing.

“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.”

Tredz and Wheelies have a 250 strong workforce, which helped the firm total £32 million in revenue for the year ending February 29th,2016, a 36% year-on-year growth. The businesses generated an annual profit of nearly £2.4 million in the same period.

Keith and Michael Jones, the founders of the Welsh businesses will remain as part of the deal, with Kieth leading as group managing director. Established 27 years ago, Wheelies has since become Britain’s largest insurance replacement provider.

Keith Jones said: “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.”

Depending on performance to the year ending February 28th, 2017 an additional payment may also be due in 2017.