Apollo completes acquisition of Vredestein
Indian tire manufacturer Apollo Tyres Ltd. has completed its acquisition of Vredestein Banden B.V. from bankrupt Russian tiremaker Amtel-Vredestein N.V.
Amtel had owned Vredestein since April 2005. The company's bankrupt status "has not affected the Netherlands-based Vredestein Banden, which continues to remain a viable entity... with a turnover of approximately 307 million euros" in 2008, say Apollo officials.
"The acquisition strengthens Apollo Tyres' plans for the European market and provides Vredestein with opportunities to leverage its proximity to a larger industry player in terms of costs, people, products and access to open markets beyond the European Union."
More than 30% of Vredestein's products are sold in Germany, with the rest being sold throughout Europe, the United States and other parts of the world. (Vredestein's North American office is based in Metuchen, N.J.)
"This is a strategic alliance for us and will bolster Apollo's plans for its European customers," says Apollo Chairman Onkar Kanwar. "The fit between the two companies spans the entire spectrum of research and development, products and people to manufacturing and markets."
Apollo says it will retain current Vredestein management.
"This alliance is a win-win combination for both companies," says Vredestein CEO Rob Oudshoorn. "We will bring to Apollo our edge in passenger car tire technology alongside an understanding of the European market. At the same time, Apollo can offer us access to non-European markets, valuable manufacturing expertise and assistance with bringing costs down by leveraging the purchasing power of a larger entity.
"This partnership will bring the desired level of stability to our operations and our people," he continues.