Halfords on acquisition trail
Posted on 20 Feb 2010
Halfords has been considering a bid for Blacks Leisure Groups 313 outdoor sector stores and has been linked to Hobbycraft the 48 store creative market leader, according to the Daily Mail.
Only last week Halfords announced the acquisition of Nationwide Autocentes, the UK's leading independent car servicing and repair operator. Nationwide's 224 outlets will be rebranded Halfords Autocentres and there are plans to roll out a further 200 centres.
The Mail suggests that Halfords is considering three acquisitions in an expansion drive. Blacks outdoor market leader status and their recently announced interest in the cycle market could make them a prime candidate. No other cycle related businesses are identified as being on the agenda as yet.
Blacks, which trades under 3 high street identities, Millets, Freespirit and Blacks has undergone a torrid period of recent, but with a growing overlap evident between the cycles and outdoor markets Halfords offers the opportunity to combine both in a wider outdoor pursuits offering.
Only in January Blacks announced plans for the launch of a number of ‘Active Stores' this summer, where bikes and cycling accessories would be positioned alongside climbing and running products.
The initial announcement of the Hobbycraft sale was accompanied by speculation that a management buyout was an option, but Hobbycraft's £75m+ turnover could offer the opportunity for a leading retailer to enter the extensive, but fragmented market place.
If the speculation proves correct, Halfords will be following ActSmart's own expansion route into the Outdoor and Creative markets.
