EC clears sale of German tire distributor Reiff

LONDON — A United Kingdom-based distribution company, owned by U.S. investment firm Bain Capital Private Equity, has received European Commission approval to buy the tire distribution business of Germany's Reiff Group.

London-based European Tyres Distribution Ltd. (ETD) — Bain's "platform vehicle" for this and other transactions — said the deal is part of its strategy to become "the leading independent tire supplier in Europe in the coming years" through organic growth and further acquisitions.

Reutlingen, Germany-based Reiff Tyre & Automotive Technology is active in wholesale, retail and online sales via four warehouses and 46 retail outlets. In 2016, it generated sales of nearly $370 million with more than 285,000 customers.

Financial terms of the deal were not disclosed.

This is ETD's second investment in tire distribution in 2017. In March, it acquired Fintyre S.p.A., a leading Italian distributor of replacement tires.

The combined revenues of Fintyre and Reiff are expected to exceed $815 million, ETD said.

Reiff Tyre CEO Eberhard Reiff said the deal with ETD "marks the next step in the growth of our tire division and is the best choice for further internationalization.

"We are proud that the new partnership with Fintyre shall become the nucleus for the largest manufacturer independent tire supplier in Europe."

Reiff Group's other businesses — in elastomer technologies, industrial products and management services — are unaffected. Reiff also has tire distribution companies in France and Poland.

Fintyre comprises 10 of Italy's larger distributors — Pneuservice'90; Pneufin; Garda Gomme; Pneuservice Agro Industriale; Toscana Pneumatici; Pneumatici F. Giordano; All Pneus Group; All Pneus Toscana; Beba Gomme Piemonte; and All Pneus Trentino Alto Adige — operating through 11 distribution warehouses.

The business distributed 6.3 million tires in 2016, generating more than $435 million sales.