Sports etailer Wiggle is expected to agree a deal to acquire online rival Chain Reaction Cycles, according to reports.

Wiggle, owned by private equity group Bridgepoint, is likely to announce a deal next week, BikeBiz reported. 

A Wiggle spokesman declined to comment. A spokesman for Northern Ireland-based Chain Reaction Cycles also declined to comment.

It is likely that any deal agreed would have to be signed off by the UK’s Competition and Markets Authority, sources told Retail Week.

Etailer Chain Reaction, founded in 1985, reported that its 2014 sales increased by 5.9% to £153.4m. The group’s pre-tax profit fell back slightly to £5m.

The UK accounts for around 40% of Chain Reaction’s sales.

In its last full-year, Wiggle, which sells cycling, running and triathlon clothing, reported an 11.5% jump in sales to £179m. Underlying EBITDA rose 16.7% to £7m. 

 

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