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April 24, 2017 02:00 AM

Kal acquires South African mine service business

Tire Business Staff
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    VERNON, British Columbia — Kal Tire has acquired a mining tire services business in South Africa that is active at 80 mine sites throughout that nation.

    The acquisition of Tyre Corp. (Pty.) Ltd.'s mining tire services business will enlarge Kal's business substantially in South Africa, where the Vernon-based tire dealership already is active with five servicing branches under the Kal Tire South Africa umbrella.  

    "We've been building our business in parts of Africa since 2009, but this acquisition goes a long way for us to ensure a long-term sustainable business in South Africa," said Dan Allan, senior vice president, Kal's Mining Tire Group.

    "… It certainly helps us in ensuring we have a sustainable business in South Africa – which remains one of the key mining markets in the world."

    Financial terms of the deal were not disclosed; Kal did not comment on the acquired business' annual sales.

    According to Kal, Tyre Corp. has been operating throughout South Africa for 12 years. With the resources that Kal brings to the table, there is room for continued growth as Kal builds on the foundation that Tyre Corp. has in place, Patrick Brown, sales director for Tyre Corp., said in a statement provided by Kal Tire.

    Mr. Allan concurred, adding that there many will see improved services and opportunities as a direct result of the acquisition.

    "Through acquisitions like this one, there are many benefits," Mr. Allan said. "Kal Tire is able to widen its experience base and we find new ways to do things and new opportunities to serve more customers.

    "For Tyre Corp. team members, they gain access to a wealth of knowledge and capabilities in the Kal Tire network including more resources to get assistance in solving problems or coming up with new ideas. And for customers, we would like to think we are able to bring all of that experience together and provide the service they demand."

    Kal is working to ensure that current Tyre Corp. customers do not experience disruptions in service or service quality. Additionally, customers likely will continue to deal with the sales and service personnel with whom they are accustomed as more than 800 Tyre Corp. employees at 80 mine sites will continue to work with the company after the acquisition.

    "Our intent is (customers) continue to receive the high level of service they are used to and deal with the same people and products as they have been," Mr. Allan said, adding that customers will also have access to some of Kal's exclusive products and services.

    Kal Mining Tire Group has been working to grow its presence globally through acquisition.

    In August, Kal purchased Klinge & Co. Pty. Ltd. in Australia, a move that allowed the firm to expand its reach into eastern Australia, where many of the country's major mines operate. Prior to that, it had took over a mining tire repair facility in Muswellbrook, New South Wales, previously operated by Goodyear.

    Vernon-headquartered Kal Tire considers itself Canada's largest independent tire dealer and one of North America's largest commercial tire dealers.

    The Mining Tire Group is a global leader in mining tire service and supply, supporting more than 150 mine sites across five continents.

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    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

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