Apollo Tyres has announced that it will be expanding its presence in Germany with the acquisition of the leading tire distribution firm, Reifencom GmbH. In a Euro 45.6 million deal, the Indian tire manufacturer purchased Reifencom GmbH which has a wide network of 37 stores and service centers spread across Germany. In addition, Reifencom GmbH also has an online presence in 6 countries – Denmark, Germany, Austria, France, Italy, and Switzerland.
Speaking about the acquisition, Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres Ltd, said the deal is a strategic fit in the development of Apollo’s European business. Through this deal, Apollo will have greater control of its mix of distribution channels in Germany and Europe and can enhance the visibility of Apollo and Vredestein tires in the offline and fast growing online retail space.
Reifencom GmbH became successful primarily due to its highly efficient logistics system, which helped the company to ensure high availability of all kinds of tires and rims required by customers, even at times of peak demand. The company’s efficient sourcing and distribution systems translated into the availability of world-class products and services at highly competitive prices, making the company one of the top tire distribution firms in the German market.
“It is our privilege to join hands with Apollo Tyres, where the team shares our passion for providing world-class products and customer service,” said Olaf Sockel and Heiko Knigge, Managing Directors, Reifencom GmbH.
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