Pirelli has acquired 100% of Däckia Holding AB, one of the main multi-brand tyre distribution chains in Sweden from private equity group Procuritas Capital Investors IV LP (and minority shareholders) for about EUR70 million. Pirelli explained that the move is in line with its strategy of reinforcement on markets with strong growth in high-end, high margin segments. In this case this is likely to mean the sale of winter tyres.
In 2011 the Swedish tyre market totalled 4.4 million units, over 60% t of which were winter tyres. Furthermore the winter segment grew by 5% in a local market which was largely flat. According to Pirelli this demand will be met by the company’s plants in Russia (particularly Voronezh, which specializes in the high-end segment).
Däckia boasts a turnover of around 900 million kronor (around 100 million euros) and 66 direct points of sale. As well as these, there are a further 50 distribution partners which give the company wide and thorough territorial coverage. Pirelli’s goal is to become the main supplier to Däckia, which reportedly has a 13% share of the tyre retail market in the country.
The acquisition was broadly hinted at in Pirelli’s 2012-2014 Industrial Plan, presented in London last November. The suggestion was that the acquisition of retail operations such as Däckia represent a reinforcement of Pirelli’s presence in growing market segments, a goal which recently saw the company also acquire a majority stake in the Brazilian distribution network Campneus.
Pirelli’s news follows the announcement that the Swedish Däckarna independent tyre retail buying group has partnered with large European collective Point S. According to that statement, the group has 39 branches in its partnership, which collectively occupying a 5% market share.