Sumitomo to Buy a Leading Tire Distributor in the UK
umitomo Rubber Industries, Ltd. is pleased to announce that it has executed an agreement to acquire UK based Micheldever Group Ltd. from Graphite Capital Management LLP. for an Enterprise Value of GBP215 million.
Having a greater degree of freedom to expand its business in Europe following the dissolution of an alliance agreement with Goodyear in October 2015, SRI has been active in taking measures to strengthen its production capabilities and expand its sales. As part of its efforts to strengthen the market position of its FALKEN tire brand in the UK, SRI decided to acquire Micheldever.
Micheldever is a holding company controlling Micheldever Tyre Services Ltd. (hereinafter "MTS"), a wholesaler and retailer of tires in the UK, established in 1972. In addition to sales to over 6,000 retailers and auto-repair shops nationwide in the UK as a tire wholesaler, MTS owns and operates about 100 tire retail outlets under the "PROTYRE" brand. MTS generates sales of about 6 million tires per year.
As part of its long-term "VISION 2020", SRI plans on accelerating its action plan "Business Expansion in Europe and North America" through this acquisition and further developing its business on a global scale.