MILAN, Italy — Pirelli & C. S.p.A. has struck a deal to buy Hevea-Tec, a business considered the largest independent processor of natural rubber in Brazil, in a bid to ensure continuity of NR supply to its factories in Latin America.
The deal, subject to the approval of relevant antitrust authorities, carries an enterprise value of roughly $23 million, Pirelli said. Closing is expected before year-end. The company has plans to increase Hevea-Tec's production volumes.
Adding this business to its holdings will provide Pirelli the resources to launch innovative NR-based projects aimed at increasing the use of non-fossil-based materials in the tires, the company said, in line with its sustainability goals.