Hero Motorss business unit, Hero Cycles Ltd has lately procured a share in Germany-based first-rate e-bike manufacturer, HNF Nicolai. The acquisition was done as a part of its strategy to make a presence in the global market.
The company bought the stake along with German investment trust IBG Beteiligungsgesellschaft Sachsen-Anhalt mbH, which is an investment vehicle for the state of Saxony-Anhalt. Hero Motors also participated in the acquisition, VC Circle reported citing Hero Cycles' statement from the companys official press release.
With this transaction, the two companies, HNF and Hero Cycles will bind to turn into a full-range provider of electronic bikes in the European markets.
The acquisition of the German firm is in line with its objective of achieving a 5 per cent market share by 2022, Hero said in an interview with the cited media agency.
It will strengthen HNF by investing in its design, brand building, distribution and supply chain capabilities. Hero Motors Company will also establish HNF as its global center of excellence for electric bikes with its Berlin-based research and development center, the bike manufacturing firm said in an interview with the cited media agency.
The company will leverage HNFs expertise in e-bike design and engineering strength for the e-bike and bicycle businesses in global markets, Hero Cycles added.