After having failed to acquire the
US based Cooper Tire in a $2.5 Billion deal, the country second largest tyre
manufacturer by Sales, Apollo Tyres had acquired Reifencom GmBH, one of the
largest tyre distributors in Germany for Euro 45.6 Million.
Reifencom GmBH has an online
presence in six countries – Germany, France, Italy, Austria, Switzerland, and
Denmark. In Addition, it operates 37 stores and service centres across Germany.
Acquisition 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 offline and especially in the fast growing online retail
space.
Reifencom has turnover of 147
Million euro in 2014. The acquisition will give Apollo two benefits: increase
in number of channels overseas as well as access to retailing multiple brands.
Apollo already has 3,500 dealers/partners in Europe which will now get further
enhanced due to the acquisition of Reifencom.
The success of Reifencom GmBH is
attributed to its highly efficient logistics system, which ensures there is a
guarantee of a high degree of availability of all kinds of tyres and rims, even
during busy periods like spring and autumn. Reifencom GmBH procures tyres and
rims from leading manufacturers thereby ensuring a high level of quality.
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