The joint business of Tredz and Wheelies of Wales has been acquired by Halfords. Founded and owned by brothers Keith and Michael Jones the bike shop and insurance replacement business employs 250 people. The businesses – which had a turnover of £32m in 2016 – will continue to trade with their existing names, and will be led by Keith Jones as group managing director.
Halfords has paid an initial amount of £18.4m and, depending on performance over the next year, there will be an additional payment in 2017.
Keith Jones, said: “We are very proud of the businesses that we’ve grown from a single shop over 25 years ago into a strong operator. However, the time has come for us to seek a partner to provide new investment and Halfords are exactly what we were looking for."
Halfords CEO Jill McDonald said: “We believe this is a strong and complementary addition to the Group, extending our presence in the online market for premium bikes, parts, accessories and clothing."
She added: "We continue to believe in the long-term growth potential of the cycling market.
Wheelies began as a bicycle shop in Swansea in the 1980s. The business expanded into mail order and insurance replacement during the 1990s. Tredz was launched as a separate e-commerce operation in 2005, with its own bricks and mortar presence added in Cardiff and Swansea two years later. In 2014 Tredz opened a Giant-branded store in Swansea, the UK’s largest.