Apollo Tyres has announced that it has acquired Reifencom GmbH, one of Europe’s largest tyre distributors, for 45.6 million euros (around INR 323.3 crores). The German retail giant operates 37 stores in its home country and has online presence in Germany, France, Italy, Austria, Switzerland and Denmark.
Speaking about the acquisition Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres Ltd, said it is a strategic fit to grow the European business further. The move will enable Apollo to improve its mix of distribution channels in Germany and Europe. The deal will also increase visibility of Apollo and Vredestein tyres in both offline and online retail space.
Over the years, Reifencom has earned a reputation for itself in the tyre retailing space, thanks to its highly efficient logistics system which results in high availability of tyres and rims of all configurations throughout the year. The retail chain sources its items from top manufacturers to avoid quality issues.
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Apollo Tyres has been on a global acquisition spree with particular interest in the European market. The existing Vredestein brand and the new acquisition is expected to improve the Indian tyre maker’s presence in the continent significantly.