Chain Reaction Cycles, the Ballyclare-based family-owned business that has grown to become one of Europe’s largest online bike retailers, is to merge with one of its chief competitors, Wiggle.

The online retailer of equipment for cycling, running and swimming, which is owned by the private equity investment firm Bridgepoint, said there was a “compelling industrial logic” for the two businesses to join forces.

Stefan Barden, chief executive officer of Wiggle, said: “We have long respected Chain Reaction Cycles as a business and share its values and commitment to delivering the best possible price and first class service for its customers.

“Like us they have a deep seated love of cycling. The combined business will offer all customers an extended range of brands and products, with Wiggle’s strength in tri-sports and road cycling complemented by Chain Reaction Cycles’ strength in mountain biking, BMX and road cycling too.”

The Ballyclare company was set up in 1984 by George and Janice Watson with a £1,500 bank loan - today it employs 700 people and has an estimated annual turnover of more than £150 million.

The company is still very much a family-orientated business involving the couple’s three daughters and their son Chris who is the managing director.

The merger between Chain Reaction Cycles and Wiggle is subject to a number of regulatory approvals, including merger control clearance from the Competition and Markets Authority (CMA), but it is expected to create a business that will have revenues in excess of £300 million.

Chris Watson, managing director of Chain Reaction Cycles, said the merger marked an“exciting new chapter” for the company.

“Since the business started in 1984, we’ve grown strongly from our mountain bike origins in Northern Ireland to meet the needs of more MTB, BMX and road cyclists across more countries.

“Coming together with Wiggle is a great way to continue that growth, as a global force in cycling and a leader in technology, eCommerce and innovation.”