Magna Tyres buying Australian distributor Fennell Tyres

KEWDALE, Australia — OTR tire distributor Magna Tyres Group is acquiring Fennell Tyres International, a Kewdale-based distributor of truck/bus and OTR tires throughout Australia, to help it build its presence on that continent and expand sales globally.

Formed in 2005, Kewdale-based Fennell Tyres provides on-site earthmover and truck tire services for mining, transport and civil contracting operations and equipment. Annual sales are listed as $14.5 million. Terms of the deal were not disclosed.

"We were attracted to Fennell Tyres International by the common vision on expanding both companies and product portfolio," Michael de Ruijter, president and CEO of Magna Tyres, said.

The Australian operation will "strengthen our position as the largest second-tier supplier of off-the-road tires and service provider in the world,'' he added, noting that Magna's goal is to increase sales to $680 million within five years.

To support that growth goal, Mr. de Ruijter said Magna Tyres is considering "more acquisitions in the near future."

"The "combined company will collaborate on improving tools and technologies, both companies are confident this combination will enable us to provide better service for our current and potential customers," Aldo Gismondi, managing director of Fennell Tyres, said.

According to Fennel Tyres' website, the Western Australia company handles a range of brands, including Bridgestone, Hankook, Kumho, Maxam, Michelin, Toyo and Yokohama.

Waalwijk, Netherlands-based Magna Tyres is supplier of OTR, industrial, port handling and heavy-duty truck tires.

The 15-year-old company has a U.S. sales office in Ontario, Calif.