Hankook Tire Co. Ltd. has bought Reifen-Mueller KG, an independent German tire wholesaler and retailer.
The deal also includes the purchase of the company's retreading business, Reifen-Mueller GmbH & Co. Runderneuerungswerk KG.
Financial terms of the agreement were not disclosed.
Founded in 1966, Reifen-Mueller owns 44 service centers in Germany and employs more than 700 people. It sells a wide range of tires, from passenger and light truck to heavy truck, bus, motorcycle and agricultural tires. Reifen-Mueller's current owners, as well as acting management, will remain with the company.
Hankook says the acquisition secures "one of the most innovative tire distribution models in Germany, which is to have an extremely competitive automotive market. It will allow the tire maker to expand its distribution channels in Europe, laying down the basis for strengthening the company's global distribution competitiveness."
The tire maker says it will use Reifen-Mueller's existing service centers as "strategic bases to expand its business by solidifying its distribution networks. Through the distribution network that sells global multi-brands along with its own products, Hankook Tire will further complete the existing customer-oriented distribution system that thoroughly reflects the needs of consumers."
Hankook says the acquisition is part of its goal to establish an innovative distribution system. In 2017, the company acquired one of Australia’s top retail franchises, Jax Tyres (JAX Quickfit Franchising Systems Pty. Ltd.). Hankook says the acquisition helped to increase sales in Australia, but also allowed the company to leverage the Jax Tyres distribution system to its 4,000 direct and franchised distribution channels globally.
The company says, "Hankook Tire will continue to successfully follow its organic growth strategy by building large scale manufacturing plants and R&D centers, and establishing innovative distribution networks to strengthen its global positioning as a leading tire company. It will also engage in consistent M&A investments with partners that can provide maximum synergy to reinforce its global competitiveness."
For more information, visit www.hankooktire.com/global.