By Liz White, ERJ staff
Moscow - Russian group Amtel Holdings Holland NV has completed its acquisition of Dutch tyre maker Vredestein Banden BV for Euro 195.6 million in cash. Amtel Holdings Holland NV is the parent company of the Amtel Group, a major Russian producer of tyres for passenger car and commercial vehicles.
The purchase will expand Amtel's global operations in Europe, Asia, the former Soviet Union and North America. Total capacity of the Amtel Group, including Vredestein Banden, will be around 22 million tyres a year-up from 14.4 million before the deal.
â€œWe believe that this acquisition will contribute significantly to the successful development of Amtel as a pan-European company. The combined entity benefits from the Vredestein brand that has an international reputation for quality as well as access to manufacturing skills and expertise driving our ability to compete effectively at all levels of the market, both in Russia and abroad" said Sudhir Gupta, chairman of Amtel's supervisory board, in Amtel's statement on the purchase.
Amtel gains â€œaccess to technology and manufacturing expertise, European and North American distribution networks, a unique and market-focused product mix and additional management and human resource capabilities,â€ added Alexei Gurin, Amtel's ceo.
Vredestein had total sales in 2004 of more than E230 million, from tyres for passenger cars, delivery vans, bicycles, and agricultural and industrial vehicles. The company has sales offices across Europe and in North America. Amtel said about 30 percent of Vredestein's sales are in Germany.