Apollo Tyres acquires German tyre distributor Reifencom GmbH
Published On 04-Jun-2016 00:01:01
Acting on its plans to become a global brand, Apollo Tyres has bought Reifencom GmbH, one of the largest tyre distributors in Germany, for 45.6 million euros (Rs 301 crore approx).
The company, in its statement to stock exchanges, said, "The board of directors at its meeting, held at a short notice, on November 16, 2015 has approved the acquisition of Reifencom GmbH through a wholly-owned subsidiary of the company."
Neeraj Kanwar, Vice-Chairman and MD of Apollo Tyres said, "The acquisition is a strategic fit in further growing our European business. It will enable Apollo to improve its mix of distribution channels in Germany and Europe and aid in increasing the visibility of Apollo and Vredestein tyres in the offline and especially the fast-growing online retail space."
[caption id="attachment_1863" align="alignnone" width="752"] Reifencom Store[/caption]
Reifencom GmbH has developed online presence in six countries including Germany, Italy, France, Austria, Switzerland and Denmark. In addition to this, the offline presence of the company is also quite good and it operates 37 stores and service centers across Germany.
Reifencom GmbH has been successful due to its highly-efficient logistics system that guarantees high degree of availability of all kinds of tyres and wheels. The service of Reifencom remains efficient even during the busy periods of spring and autumn.
The company fulfills its objective of providing world-class products and services in competitive prices by procuring tyres and wheels from leading manufacturers. This ensures that a high level of quality is maintained. Managing Directors of Reifencom GmbH, Olaf Sockel and Heiko Knigge, said, "It is our privilege to join hands with Apollo Tyres where the team shares our passion for providing world-class products and customer service."
The deal will be completed in the next quarter after receiving all the required regulatory approvals.