One of the leading distributors of aftermarket tires in Italy, the Fintyre Group has entered the tire retail business with a new acquisition, buying the Pneusmarket network from Marangoni. Marangoni is one of the leading tire retreading firms in the world and the deal will allow Marangoni to focus on its core business.
The Pneusmarket network consists of 40 company-owned retail locations in addition to over 20 franchisees that specialize in the sale of global brands of consumer, off-road and truck tires. It is the largest such tire retail chain in Italy and has a strong presence on the retail tire scene with over 200 employees. Sales crossed 63 million euros in 2014. The company’s customers include inpidual motorists, company fleets, car rental companies, and small and medium sized logistics companies. Even after the acquisition, Pneumarket will continue to operate under its own brand, according to the terms of the agreement between the two companies.
Commenting on the acquisition, Mauro Pessi, chairman and CEO of Fintyre said, “The market trends require increasing size, a prerequisite for optimizing the management and propose conditions and competitive solutions.”
He added that the acquisition is in line with the strategic plan to expand the company’s presence that was formulated last year after BlueGem acquired control of the company.
Fintyre has a longstanding relationship with Marangoni Group and the acquisition of Pneusmarket network from the latter was based on indepth knowledge of the growth potential for Pneusmarket once it becomes part of Fintyre.
As an outcome of the deal, Fintire which has sales of over 4 million tires on an annual basis and has a 14 per cent share of the replacement tire market in Italy will now expand into the retail tire business. Fintyre expects to increase its revenue to 320 million euros with this acquisition and according to sources within the company, this deal is just the first step in the company’s drive to strengthen its position in the Italian market. Fintyre plans to expand steadily over a three-year time frame with an investment budget of 50 million euros. The deal between the two companies also included the establishment of two new long-term agreements between Pneusmarket, Marangoni Group and Pneusmarket Romagna for the supply of car and truck tires.
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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