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PIRELLI ACCELERATES PENETRATION OF NORDIC COUNTRIES BY ACQUIRING SWEDISH TYRE DISTRIBUTION CHAIN DÄCKIA FOR APPROX. 70 MILLION EURO

IN LINE WITH PREMIUM STRATEGY, PIRELLI STRENGTHENS POSITION IN MARKET WITH WINTER SEGMENT GROWTH

Pirelli, in line with its strategy of reinforcement on markets with strong growth in high-end, high margin segments, has acquired 100% of the capital of Däckia Holding AB, one of the main multi-brand tyre distribution chains in Sweden from the private equity group Procuritas Capital Investors IV LP and minority shareholders for 625 million kronor, or approximately 70 million euro.

With the acquisition of Däckia, Pirelli gains a distribution platform which will accelerate its penetration of the Nordic countries, a natural market for winter tyres, which contain a high level of high-performance components.  In Sweden, in particular, of the 4.4 million pieces which constituted total tyre demand in 2011, over 60% were winter tyres, a segment which last year grew by 5% in a local market which was largely flat. This demand, in line with Pirelli’s ‘local for local’ approach, will be satisfied with tyres produced in the recently acquired plants in Russia, in particular in Voronezh which specializes in the high-end segment.

Däckia has a consolidated presence on the Swedish market and boasts a turnover of around 900 million kronor (around 100 million euro) 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 with a 13% share of the retail market is one of the major tyre chains in the country.

As foreseen in the strategy of the 2012-2014 Industrial Plan, presented in London last November, the acquisition of Däckia represents a further reinforcement of Pirelli’s commercial presence at the international level on markets characterized by growing demand in the most profitable market segments, a goal which recently saw the company also acquire a majority stake in the Brazilian distribution network Campneus.

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Categories: Group Investors Media