Hankook Tire takes over German tire retailer Reifen-Muller
[THE INVESTOR] Korea’s largest tire maker Hankook Tire on July 4 announced it has acquired a full stake in German tire retailer Reifen-Muller.
Hankook Tire has not disclosed the deal value, but industry sources say the price tag is estimated to be around 100 billion won (US$89.76 million).
“Through this acquisition, Hankook Tire has secured innovative distribution business model of Germany’s developed automotive industry, that is essential for our new growth,” a Hankook official said in a statement. “We will create an integrated distribution system that covers the whole of Europe.”
Reifen-Muller, since its establishment in 1966, has expanded to 44 stores and 700 employees across central and southern Germany. It sells more than 2.4 million tires for passenger vehicles, trucks and buses per year.
Hankook will sell its products through Reifen-Muller’s outlets and expand its retail sales across the country. The tire maker has been eyeing tire outlets to secure distribution channels across the world in a bid to diversify its tire manufacturing-focused portfolio. Last year, it acquired 100 percent of Jax Tyres, Australia’s largest tire franchise operator.
The tire maker said it will continue to look out for more mergers and acquisitions and investment opportunities to enhance its global competitiveness.
By Ahn Sung-mi (firstname.lastname@example.org)