Indian tyremaker Apollo Tyres has successfully acquired the bankrupt Dutch company, Vredestein Banden BV, for an undisclosed amount.
Vredestein Banden is the manufacturer of premium passenger car tyres and was a 100 percent arm of Russias largest tyremaker Amtel-Vredestein.
Apollo is a company with $1 billion turnover. It said that the acquisition will be funded through both internal accumulation and external loan finance. The transaction has been conducted through a special purpose vehicle of Apollo, or a holding arm.
Both the companies refused to comment on the cost of acquisition. However, it is reported that it could be in the region of $300 million.
The two companies said, "The parties concerned will be in a position to disclose further information, including the price, only after certain conditions have been met and certain approvals, including regulatory and statutory approvals are granted."
The century-old Dutch company has a large portfolio of high-end tyres with a manufacturing plant near Amsterdam. The company has a capacity of 5.5 million tyres per annum.
Apollo said that the acquisition will provide the company entry into Europe with manufacturing facility and market and distribution network of VBBV as well as access to high end technology.
The company has four manufacturing units in India and four in Southern Africa, with a Greenfield facility currently being built in Chennai.
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