Ged Holmyard of the promotions department at Edinburgh Bicycle Cooperative Ltd said:
"We have long admired Cycling World as a retailer of quality bicycles, accessories and cycle clothing. We fully intend to maintain and build on its fine reputation. In particular, Edinburgh Bicycle looks forward to working with the existing staff and
suppliers of Cycling World."
Cycling World's previous owner, Barbours Garages Limited, will continue to trade from its shop in Fraserburgh.
"Edinburgh Bicycle Co-op have considered for some time that a degree of consolidation would be good for the IBD sector," said Holmyard.
"We feel that a smaller number of stronger retailers would provide cycling consumers with higher levels of service, and suppliers with a more reliable and better-financed channel for their products."
The deal to acquire the assets and goodwill of Cycling World for a cash settlement is a highly unusual one for a Co-operative.
"Wearing our workers co-operative hat, we realise that it is rare for a workers co-operative to grow by acquisition, in fact we can't readily think of another example!"