In one of the biggest automotive deals in recent times, Indian giant Apollo Tyres has recently bought out German company Reifencom for a whopping 45.6 million euros! This deal has definitely garnered huge attention in both Indian and global markets.
Apollo Tyres has announced the path breaking acquisition of Reifencom GmbH which is one of the biggest distributors of tyres in Germany. The size of the deal has been estimated to approximately 45.6 million Euros or INR 323.6 crore which is huge by any standards. This acquisition will be strategically suitable for Apollo Tyres and will help expand its European business further according to the Managing Director and Vice Chairman of Apollo Tyres, Mr. Neeraj Kanwar.
Reifencom GmbH operates around 37 service centers and stores across Germany and also has a significant online presence in France, Germany, Austria, Italy, Denmark and Switzerland. The company has a sound logistics system which ensures steady supplies of tyres even during peak seasons and its emphasis on procuring the best quality tyres from top manufacturers of the same globally. The company has received industry acclaim for its service and quality alike. According to Mr. Kanwar, this acquisition will further the improvement of the entire distribution mix and channels for Apollo in Europe and Germany and will also help scale up overall visibility for Vredestein and Apollo tyres in the offline space along with the rapidly growing online retail category which is poised to be the growth segment of the future.