On Monday, Apollo Tyres announced its acquisition of Reifencom GmbH, one of the pioneer and biggest tyre distributors in Germany for $48.9 million (Euro 45.6 million).
German’s famous Reifencom operates online in six countries that includes Germany, France, Italy, Austria, Switzerland and Denmark. Apart from this, it also operates in 37 stores and services centers across Germany. The success of the company is mainly because of its highly competent logistics system which ensures the availability of all kinds of tyres and rims even during the busiest seasons and also, its high level of quality it maintains in its products.
Olaf Sockel and Heiko Knigge, managing directors of Reifencom GmbH 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.”
About the acquisition, Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres said, “It 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”.
It was after the failure the Apollo Tyres faced after the acquisition of Cooper Tire and Rubber Co in 2013, the company decided to buy a global tyre company. Also, it is all set to expand its operations in Hungary investing more than $200 million and expanding its factory in Chennai where it makes truck radials.