Halfords acquires Tredz and Wheelies Direct for at least £18.4m cash, with more paid depending on the financial performance this year

Retailer Halfords has stepped up its interest in the cycling market by acquiring two online companies for at least £18.4m, according to ShareCast News.

Tredz and Wheelies Direct, both founded by Keith and Michael Jones in South Wales, will continue to operate on a standalone basis, with revenues of around £32m for the year ending February 29, 2016.

Halfords recently saw its sales of bikes and cycling equipment slow amid strong competition in the sector.

Halfords chief executive Jill McDonald said: “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.”

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Tredz is an online retailer of premium bike and accessories, while its sister company Wheelies is the UK’s largest provider of replacement bikes for insurance companies.

Co-founder 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.”