EuropeanFinTyre Distribution Limited (EfTD) acquires ReifenKriegGroup
EuropeanFinTyre Distribution Limited (EfTD), one of the leading pan-European tire distributors, has recently signed an agreement to acquire the ReifenKrieg Group, active in Germany in the wholesale distribution of full-range spare tires. ReifenKrieg’s current shareholders and management, Holger Krieg and Tobias Fink will continue to manage the company. Since 2007, the year of its foundation, ReifenKrieg Group has distinguished itself becoming a reference point in the industry through its comprehensive range of products and tire brands. Based in Neuhof, the company ended last year with a turnover of around 330 million euro. ReifenKrieg Group is one of the main players in the wholesale tire market in Germany with an annual distribution of 3.5 million tires in the consumer, motorcycle and truck segments in addition to over half a million steel and alloy wheels, with plans for further growth in all the above-mentioned segments.
EfTD - owned by Bain Capital Private Equity, a major global investment company - aims to become the leading European independent tire retailer, and this through both an internal growth process and through a programmed acquisitions of leading distributors. In 2017, in fact, the company acquired Fintyre, a company specialized in the distribution of replacement tires and the ReiffTyre Group, an independent multi-channel distributor in Germany. The two companies - ReifenKrieg and ReiffTyre Group - will operate on the German market independently as EFTD subsidiaries with joint strategies as far as procurement and finance. This agreement reflects a shared vision between the two groups and their respective managements, able to count on 1,300 employees, a turnover of 1.1 billion euro, 16 warehouses and a widespread presence both in Germany and in Italy. "The ReifenKrieg Group has been steadily growing since 2007, the year of its foundation, and thanks to this new agreement we are convinced that this trend will continue. EuropeanFinTyre Distribution Limited and ReifenKrieg Group will carry on expanding their portfolio of services and strengthen customer relations”, according to Holger Krieg and Tobias Fink, Managing Director of ReifenKrieg Group.
"EFTD's development strategy aims to consolidate the spare tires distribution segment at European level through acquisitions in strategic markets such as Germany which, with over 48 million tires sold in 2017, is certainly one of the most important. The newly acquired group can rely on a first-class management team that we welcome in our organization. This integration will create a leading European group", explained Mauro Pessi, CEO of EuropeanFinTyre Distribution Limited & Fintyre. "In just over a decade, Holger Krieg and Tobias Fink have been able to build, from scratch, one of the leading tire distributors in Germany. The ReifenKrieg Group enjoys an excellent reputation in the market thanks to first-class services and an important customer focus. We were particularly impressed with their work and their teams. We look forward to working with them in our development process and become the first independent tire distributor in Europe," commented Ivano Sessa, Bain Capital Private Equity managing director. The operation, as one would expect, is subject to approval by the competent authorities. EuropeanFinTyre Distribution Limited could rely on the assistance of advisors such as PwC, HengelerMueller and BCG, while ReifenKrieg Group was assisted by Jones Day and SOLIDA-SteuerberatungsGmbH.