Pirelli to sell Nordic tire retail arm to CTS

Milan/Stockholm – Pirelli has agreed to sell its Nordics distribution arm Daeckia AB to CTS, a Stockholm-based independent tire service company.

The sale is part of a broader partnership with CTS which is aimed at strengthening Pirelli’s commercial presence and high value strategy in the region and helping CTS enhance its reach and services in Sweden.

Under the agreement, CTS will acquire Daeckia’s network of 60 company-owned outlets and 42 affiliates across Sweden, Pirelli announced on 23 April.

At the same time, Pirelli and Daeckia have signed a supply agreement through to 2030 for the distribution of Pirelli products, with Pirelli playing the role of ‘main supplier’ for the retailer.

Subject to customary closing conditions and regulatory approvals, the transaction is expected to be finalised by July.

The alliance allows Pirelli to access “an even more structured distribution system, with an expected increase of market coverage and retail specialisation.”

“The Nordic region is a strategic market, for both positioning targets and the quality of the car parc, with a significant EV presence, a segment in which the company has a leading role,” said Livio Magni, Pirelli SVP Europe.

The transaction, he said, “consolidates our strategic focus on the market, in cooperation with a partner with a complimentary focus in this business.”

For CTS, the agreement will help the group achieve its vision of building “a flexible and customer-centric network that can meet changing customer needs and high operational demands.”

“Through the intention to acquire Daeckia we are building a full-service offering that integrates tire service, distribution, wheel alignment and retreading,” said David Boman, CEO of CTS.