Mumbai, Sept. 17: Hero Cycles today said it had acquired Firefox Bikes for an undisclosed amount as part of the company's strategy to expand in the fast-growing premium cycles segment.

As part of the deal, the promoters of Delhi-based Firefox Bikes have divested their entire equity stake to Hero Cycles in an all-cash transaction.

"Through this acquisition, Hero Cycles will further expand its presence in all major categories of bicycles in India through its brands such as Hero Cycles, UT, Firefox and UT Edge," Hero Cycles chairman and managing director Pankaj Munjal said.

The aim is to provide customers with world-class products at every price range keeping in view their fast evolving tastes and needs, he said.

Hero has also acquired Firefox's distribution rights of Trek and other global brands. Both the companies have agreed that Firefox Bikes will continue to have its distinct brand identity and remain a separate business entity.

Firefox Bikes' founder and managing director Shiv Inder Singh said, "This acquisition will help Firefox to penetrate further into the Indian market. It will also help Firefox to expand its marketing visibility and acquire an aggressive approach in reaching out to our customers."

Hero has committed itself to investing in Firefox's product range, which will hit the markets soon, he said.

Singh will continue to lead Firefox Bikes as the CEO.

The premium cycle segment in India has been growing at a compounded annual growth rate of 25 per cent over the past many years, reporting sales of more than two lakh units a year.

Firefox sells over 70 different models of Firefox bikes and 25 Trek models through a network of 160 company-owned and franchise outlets.