Continental divesting Finnish stud specialist Tikka Spikes

Hanover, Germany – Continental AG has is divesting its Finnish spikes specialist subsidiary Tikka Spikes Oy as part of a management buyout.

Parts of Tikka’s current management team led by Juha Rautiainen will acquire all shares in Tikka Spikes through their newly founded company Tikka Industrial.

Continental expects to complete the deal, the financial details of which were not disclosed, by 1 March.

All current employees of Tikka Spikes will be taken over by the new owners, said the German group 21 Feb.

Furthermore, Continental said it had agreed to continue its supply, development and testing partnerships with Tikka following the divestment.

"Tikka is a renowned expert when it comes to tire studs,” said David O'Donnell, head of global R&D for passenger car and light truck tires at Continental.

“We will continue to rely on their extensive expertise in this area in the future through joint development and testing,” he added.

Having been part of Continental since 2008, Tikka now expects to serve “a much wider customer base” as an independent company, according to Rautiainen, managing director.

According to Continental, Tikka Spikes is “one of the world’s largest manufacturers of tire studs”.

The company has more than 60 years of experience in the field and employs around 50 people.