Hero acquires 60% stake in German bicycle firm MIFA
Hero Cycles, the world's largest cycle manufacturer, has acquired 60 per cent stake in German bicycle company MIFA for 15 million Euros.
The company will be spending an additional 4 million Euros as capital expenses in restructuring the acquired company.
‘The deal is worth 19 million Euros. 15 million euros for 60 per cent stake and additional 4 million Euros for capital expenses in restructuring the acquired company,’ sources in the company said.
The company, however, has the option to further increase the stake in MIFA in future.
Hero in a statement said, ‘this is a first of its kind partnership in the bicycle space globally, with an Indian company providing its cost efficient manufacturing base and supply chain to a European company with critical technology and access to the lucrative European market, especially in e-bikes.
MIFA, with revenues of around 100 million Euros, is a specialist in the mass market bicycle segment in Europe. The company has recently made headways in the e-bike segment in Europe, with its 'Grace' brand of e-bikes.
This acquisition also gives Hero Cycles access to the critical Electronic Drive Unit (EDU) technology, used in e-bikes.