Frank Schröder

Frank Schröder
Director, Head of Marketing & Communications

Büro Dusseldorf
+49 211 6901-1200

Baker Tilly advises Hero Cycles on entry into German e-bike market by investment in HNF Group

Frankfurt a. M., 29 January 2020 - Baker Tilly has provided comprehensive advice to the Indian company Hero Cycles Ltd., the world's largest bicycle manufacturer, on its strategic investment in the German company HNF GmbH, based in Biesenthal near Berlin. The transaction took place by way of a capital increase at HNF GmbH. Besides Hero Cycles, IBG Fund, managed by bmp Ventures AG, the German federal state of Saxony-Anhalt’s venture capital fund, and other private and public investors also invested in HNF Group. For Hero Cycles Group, this also signifies their entry into the German bicycle market. 

The advisory services provided by the multidisciplinary Baker Tilly team, led by Frankfurt-based partner Peter Holst, covered the legal, tax and financial aspects of the transaction and included legal, tax and financial due diligence, tax and legal transaction structuring as well as negotiation and drafting of the transaction documents. The Baker Tilly team comprised the lawyers Peter Holst (lead partner), Manfred Baumbach, Konstantin Warnowizki (all corporate law, M&A), David Schrader (financing), Marco Stahn (employment law), the tax advisors Friedrich Wamsler (partner) and Jens Tobolla (tax due diligence and tax structuring), as well as the valuation experts Siegfried Hund (partner) and Stefan Greger (financial due diligence, company valuation). The transaction agreements were notarized on 23 December 2019.

HNF Group develops, produces and distributes a range of innovative and maintenance-free e-bikes in the premium segment under the brand name HNF-NICOLAI. The joint transaction is intended to turn HNF into a full-range supplier on the European e-bike market and into the European group-center for research, development and design. In addition to the traditional premium segment, the broader segments of the European e-bike market are also to be served in future. The bundling of joint forces includes not only the portfolio’s expansion with new brands and products, but also the expansion of production capacity in Saxony-Anhalt. 

Hero Cycles Ltd., a bicycle manufacturer operating in Punjab, India, was established in 1966 and has become, with a production capacity of 7.5 million bicycles per year, the world's largest bicycle manufacturer in terms of production capacity. The company is part of HMC Group, with total assets of USD 1.2 billion and employs about 7,500 people.

Press Contact
Dennis Sagner
Referent Marketing & Communications
Baker Tilly
T: +49 211 6901-1383