Onkar Kanwar-led Apollo Tyres Ltd has agreed to acquire Germany-based tyre distributor Reifencom GmbH for Rs 324 crore (€45.6 million or $49 million), according to a stock market disclosure.
The acquisition of Reifencom, which has an online presence in six countries namely Germany, France, Italy, Austria, Switzerland and Denmark, is expected to help the Indian firm improve its mix of distribution channels in Germany and rest of Europe.
“The acquisition is a strategic fit in growing our European business,” said Neeraj Kanwar, vice-chairman and managing director, Apollo Tyres.
It will also enable Apollo to increase its visibility and presence of Vredestein tyres offline and in the fast-growing online retail space.
The acquisition, which is expected to be completed over the next one to three months, is however subject to regulatory and anti-trust approvals in Germany and Europe.
Headquartered at Gurgaon, Apollo Tyres is engaged in manufacturing of tyres. It offers automotive tubes, tires, and rubber products. The firm also provides truck/bus radial, off-the-road tires, retreading and allied automotive services. It caters to two-, three- and four-wheeler vehicles.
This is the first significant overseas acquisition move by the firm in over two years after its big $2.5 billion deal to buy US-based Cooper came unstuck. In the past, the firm has acquired firms in South Africa and Holland. It sold a part of the African business to Sumitomo in 2013, seven years after acquiring it.
It had also got a strong European foothold through its Dutch acquisition of Vredestein in 2009.
Shares of Apollo Tyres closed at Rs 157.70 each, up 1.68 per cent on BSE in a strong Mumbai market on Monday.
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