Apollo Tyres acquires Dutch tyremakerMay 18th, 2009 - 4:37 pm ICT by IANS
New Delhi, May 18 (IANS) Indian tyremaker Apollo Tyres Monday said it has successfully concluded the acquisition of the bankrupt Dutch company, Vredestein Banden BV, for an undisclosed amount.
Vredestein Banden manufactures premium passenger car tyres and was a 100 percent arm of Russia’s largest tyremaker Amtel-Vredestein.
Apollo, a $1 billion turnover company, said the acquisition will be funded through both internal accruals and external loan finance. The transaction has been conducted through a special purpose vehicle of Apollo, or a holding arm.
Even though the two companies declined comment on the cost of acquisition, reports said it could be in the region of $300 million.
“The parties concerned will be in a position to disclose further information, including the price, only after certain conditions have been met and certain approvals, including regulatory and statutory approvals are granted,” the two companies said.
The century-old Dutch company, which started operations with the procurement of rubber in 1909 and ventured into tyre manufacture in 1946, has a large portfolio of high-end tyres with a manufacturing plant near Amsterdam.
The company has a capacity of 5.5. million tyres per annum.
Apollo said the acquisition will provide the company entry into Europe with manufacturing facility and market and distribution network of VBBV as well as access to high end technology.
The company has four manufacturing units in India and four in Southern Africa, with a greenfield facility currently being built in Chennai.
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