COLOMBO, Sri Lanka—Global Rubber Industries Pvt. Ltd. has acquired Nortire Group A.S., an Estonia-based tire and wheel distributor, to help expand its distribution in Europe.
Rae Vald, Estonia-based Nortire Group distributes industrial, construction and agriculture tires and wheels, rubber and steel tracks, polyurethane wheels and castors, axles and stub axles for ag and forest trailers and related services in Northern Europe.
Terms of the deal were not disclosed.
In addition to its headquarters in Estonia, Nortire has two distribution facilities in Lithuania and one in Latvia, covering a large swath of Northern Europe that includes Finland, Estonia, Latvia, Lithuania, Belarus and Western Russia.
Founded by Tarmo Maennasalu in 2000, Nortire also operates four wholesale and service centers in the region.
GRI said the acquisition will help it gain a foothold in the North European tire market.
Prabhash Subasinghe, managing director of GRI, said Nortire has increased revenue annually "at a noteworthy pace, to a level that attracted GRI.
"This milestone will prove to strengthen and build upon the geographical outreach of GRI," Subasinghe said. "The Nortire Group is in fact, recognized as the market leader in the product offering of material handing tires. This competitive advantage will propel GRI's success in the market."
GRI CEO Mahesha Ranasoma said GRI soon will deliver products to the North European tire market through Nortire, "thereby effectively enhancing the group to become an all-rounder in the offering of specialty tires."
Guenter Fleck, consultant for GRI Europe (Global Rubber B.V), said the acquisition will complement GRI's distribution networks in Germany, France, Spain, Netherlands, Italy and the Baltic states, "resulting in reduced lead time to customers and ensuring the continuous growth of GRI's material handing tires across the region."
Maennasalu said GRI has proved itself to be "passionate in taking on stimulating strategic advancements, coupled with a strong commitment to producing high quality specialty tires.
"It is a privilege," he said, "to hand over the reins to this multinational company and I have no doubt that this will lead Nortire into prosperous growth and allow for the continued provision of premium tires with outstanding quality and assured performance to our customers."
GRI, which recently joined the Panel of Associates of the International Rubber Study Group, operates a state-of-the-art factory in Badalgama, Sri Lanka that started production in April 2018.