Magna to acquire Australian tire company

Waalwijk, The Netherlands - Magna Tyres Group is acquiring Australian based company Fennell Tyres International, the Dutch second-tier OTR tire supplier announced 20 Dec, without disclosing financial terms.

With annual net sales of around AUD20 million (€11 million), Fennell supplies "competitively priced, high quality OTR, mining and TBR tire solutions, according to Magna's 20 Dec announcement.

The acquisition, it stated, provides additional growth opportunities and increase on tire volume and meets Magma 's goal to support Australian customers with full-service tire solutions.

"We were attracted to Fennell Tyres International by the common vision on expanding both companies and product portfolio. Our goal is to increase sales to €600 million within five years," said Michael de Ruijter, CEO-president of Magna Tyres Group. 

The Australian operation, he added will "strengthen our position as the largest second-tier supplier of off-the-road tires and service provider in the world.’’

According to de Ruijter, Magna Tyres is on track to achieve this goal and "there will be 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," said Aldo Gismondi, MD of Fennell Tyres international.’’

Formed in 2005, Fennell provides on-site earthmover and truck tire services for mining, transport and civil contracting operations and equipment.