HANOVER, Germany—India's Apollo Tyres Ltd. has bought Reifencom GmbH of Hanover, considered one of the largest tire distributors in Germany with an online presence in six European countries and 37 retail stores in Germany.
Apollo is paying $49 million for Reifencom, which Apollo Vice Chairman and Managing Director Neeraj Kanwar calls a “strategic fit in further growing our European business.
“(The 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 tires in the offline and especially the fast-growing online retail space.”
Apollo attrbutes the success of Reifencom to its highly efficient logistics system, which ensures a high degree of availability of tires and rims, even during busy periods such as spring and autumn. Further, Apollo said Reifencom's objective is to provide world-class products and services at very competitive prices.
Apollo Tyres Ltd. paid $49 million for Hanover, Germany-based tire distributor Reifencom GmbH., which operates 37 retail stores in Germany.
Reifencom's annual sales are approximately $160 million. Apollo derives about a quarter of its global sales, or roughly $595 million a year, from business in Europe, where it operates a dozen national sales companies under the Apollo Vredestein B.V. umbrella and has one factory, in Enschede, Netherlands, and one under construction near Gyoengyoeshalasz, Hungary.
