Magna Tyres Group has the largest tire retreading company in the Netherlands, OBO Tyres. Magna had recently finalized an agreement with OBO Tyres for the exclusive distribution of Magna agricultural and OTR tires in the Benelux tire market. OBO Tyres has been in the retreading business for a long time and was set up back in 1959. The company specializes in making retreaded tyres for the agricultural and OTR market and also provides tire repair services.
Magna considers the acquisition of OBO Tyres to be the next step of its drive for global expansion. As an outcome of the purchase, Magna will be able to offer customers a wider product range and new cost effective retreading options, thus further lowering the total cost of Magna Tyres solutions.
Speaking about the deal, Michael de Ruijter, CEO of Magna Tyres Group said that with the acquisition of OBO Tyres, the company will be able to provide additional services for existing Magna Tyres customers and will also get access to new markets.
The former owner of OBO Tyres, Herman Hutten said that due to the many synergies between both companies, it is a win-win deal for both parties. Though the ownership has changed hands, OBO Tyres will continue to function as before, and due to the deal with Magna will have a better market position in the retreading business. OBO will continue to position itself as a company of sustainable retreading professionals and will have a presence in more markets with green tires.
The two companies will begin integrating their activities from the beginning of March 2017, but wil continue to retain their individual names and identities.
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