Apollo Tyres buys out Germany's Reifencom for euro 45.6 mn

New Delhi: Apollo Tyres has acquired Reifencom GmbH, one of the largest tyre distributors in Germany, for euro 45.6 million (around Rs 301 crore).

"The acquisition is a strategic fit in further growing our European business," Apollo Tyres Vice-Chairman and MD Neeraj Kanwar Monday said in a statement.

It will enable the company to improve its mix of distribution channels in Germany and Europe and aid in increasing the visibility of Apollo and Vredestein tyres in the offline and especially the fast growing online retail space, he added.

Reifencom GmbH has an online presence in six countries -- Germany, France, Italy, Austria, Switzerland and Denmark. In addition, it operates 37 stores and service centres across Germany.

The success of Reifencom GmbH is attributed to its highly efficient logistics system, which ensures there is a guarantee of a high degree of availability of all kinds of tyres and rims, even during busy periods like spring and autumn.

With an objective to provide world-class products and services, and that too, at very competitive prices, Reifencom GmbH procures tyres and rims from leading manufacturers, thereby ensuring a high-level of quality.

"It is our privilege to join hands with Apollo Tyres, where the team shares our passion for providing world-class products and customer service," Reifencom GmbH Managing Directors Olaf Sockel and Heiko Knigge said.

The stock of Apollo Tyres was trading at Rs 158.50 on BSE in the afternoon trade, up 2.19 percent.