Apollo Tyres Ltd. has offered to buy Dunlop Tyres International (Pty.) Ltd. in an all-cash deal for 100-percent equity worth about $62 million.
Durban, South Africa-based Dunlop Tyres International reported sales of about $200 million last year. Apollo said the deal is subject to regulatory approvals in both countries, including that of the South African Competition Commission and certain contractual and other conditions precedent to the closing of the transaction.
Company officials have been authorized to conclude agreements with the shareholders of the firm, which also owns subsidiaries in Zimbabwe and England.
Speaking on the acquisition after a board meeting, Onkar Kanwar, Apollo's chairman and managing director, said, ``We have been in close contact with the Dunlop management for some time and have been very impressed with their range of products and the professional manner in which the company is managed. Their commitment and desire to be a technology-driven force in the international markets is apparent from Dunlop's people, factories and distribution network.
``This acquisition opens up new avenues for Apollo Tyres. We will add value to Dunlop South Africa, and the combined entity will become an even stronger force to reckon with in the coming years.''
Apollo said Dunlop Tyres International's three manufacturing units in South Africa and Zimbabwe produce a full range of cross-ply and radial products-from high-end truck and bus tires to industrial, farm, light truck, off-road and mining tires; high-speed passenger car radials; and ultra-high-performance car tires.
Apart from tires made under the Dunlop brand, the company also makes the brands Regal and India, has exports to Europe, Central Asia, Australia and South America, and has contract manufacturing agreements with key international players. In addition, it is the sole distributor of Cooper tires in southern Africa.