PARIS (Dec. 19, 2002) – Group Michelin's Euromaster tire retailing business has agreed to buy the 465-outlet European tire distribution business of Denmark's Viborg Gruppen Holding A/S.
Michelin said it will pay about $305 million for the business, which comprises 465 outlets for both retail and commercial sales in Austria, Denmark, Germany, The Netherlands and Switzerland. The Viborg tire distribution network posted sales of $510 million in 2001 with 3,400 employees, Michelin said.
The deal is subject to approval by the European Union regulatory authorities.
The acquisition will expand Michelin's distribution business sales by nearly 40 percent. The 1,200-outlet Euromaster business reported sales in 2001 of about $1.3 billion with 9,800 employees.
The combined Euromaster-Viborg network would have a share of about 13 percent of the European truck tire replacement market and 8 percent for passenger tires, Michelin said.
Viborg built its network over the past decade through a series of acquisitions, including Gummi Mayer in Germany and Pneu Matti and Pneu Stossel in Switzerland.
Viborg's Genan tire recycling businesses are not part of the transaction, Michelin said.