New Delhi: Hero Cycles will acquire 60 per cent stake in Germany's largest bicycle company MIFA. The company is listed on the Frankfurt Stock Exchange with revenues of around 100 million Euros.
This will be a unique acquisition in the bicycle space globally, where an Indian company will provide its cost efficient manufacturing base and supply chain to a European company with critical technology and access to the lucrative European market.
This partnership will allow both companies to synergise their operations and strengths, to provide a powerful combination in the global bicycle industry.
MIFA is a specialist in the mass market bicycle segment with large retail chains such as Aldi and Metro on its roster. The firm has recently made headway in the e-bike segment in Europe, with its ‘Grace’ brands of e- bikes. This acquisition also gives Hero access to the critical EDU technology, used in e-bikes.
“This transaction would bring transformational changes to both the European and Indian bicycle industry. Not only would Hero provide a manufacturing base to MIFA, but it would also introduce high quality bikes into the Indian market, ” said Pankaj Munjal, co-chairman and MD, Hero Cycles.
