Halfords has confirmed the purchase of Boardman Bikes for an undisclosed sum believed to be in the region of £15 million.
The firm was founded by former Olympic gold medallist Chris Boardman ten years ago and Boardman has also been working with Halfords on cycle design since 2007.
Halfords, which sells bicycle and car parts, has seen a major upturn in its fortunes over the course of the last few years as cycling has become a more popular pursuit around the country. This growth has been fuelled by the success of sporting icons such as Bradley Wiggins, Chris Froome, Victoria Pendleton and Laura Trott.
Cycling has been one of Great Britain's most successful sports in the Olympics for the last few competitions and this in turn has persuaded more people to travel on two wheels.
Boardman said: "This step will take the brand to the next level and their backing will allow us to further develop our research and development and extend our award-winning cycling ranges."
Halfords stated that the deal for Boardman Bikes is not going to have an impact on its expected financial returns for the current fiscal year. The chief executive of Halfords, Matt Davies, also noted that the most expensive bikes in the Boardman Performance Series and the Boardman Elite Series are not likely to be made available in stores in spite of the deal.
He added: "We have worked with Chris and his team since 2007; they have created one of the most important, fastest-growing and successful brands in UK cycling.
"We look forward to a continuation of the growth that both Boardman and Halfords have enjoyed with such a strong brand."
Investors did not appear to respond positively to the announcement of the Boardman Bikes purchase by Halfords, as the share price of the retailer fell slightly in the early stages of trading on the London Stock Exchange this morning. By 08:38 BST, stocks were down 1.23 per cent.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.