Hankook Tire has entered into a binding agreement to acquire Australia’s leading retail tire franchise, JAX Tyres. Hankook Tire will incorporate the JAX Tyres brand into the Hankook Tire Group through the acquisition. A 100 percent stake in the business was secured in a deal with JAX Tyres Chairman Ian Hurrell and CEO Jeff Board.
JAX Tyres is an industry leader and has serviced Australian motorists for more than 65 years by offering high-quality and affordable products and services. The company currently has 83 franchise stores and has been able to differentiate itself with a combination of sleek store designs and a unique in-store experience. They are able to offer a seamless consumer experience that has boasted high customer satisfaction by instigating pricing, product and promotional updates simultaneously online and in-store, which sets the standard pricing in the Australian industry.
Hankook says this acquisition will further solidify its position as a global top-tier brand through the expansion of its customer relationships; by strengthening its competitiveness in the B2C distribution sector; and extending its B2B capabilities within the tire manufacturing industry. The acquisition also will be supported by an advanced franchise system, implemented to help with the continued expansion of Hankook Tire’s distribution competitiveness beyond Asia and into the global market.
Hankook Tire also is reviewing opportunities to reach Canadian consumers through the retail chain. In addition, the tire manufacturer will expand its growth model from both a hardware-oriented business perspective, including plant establishment and a software perspective, including distribution channels and premium services.
Through the combination of Hankook’s global presence and JAX Tyres’ franchise system, the acquisition represents a synergetic victory for both brands. As part of the Hankook Tire Group, JAX Tyre will have the opportunity for continued growth through the expansion of existing stores, strengthened online capabilities and enhanced brand value. Conversely, the acquisition will allow Hankook Tire the opportunity to expand beyond the tire industry to other business divisions by being a key player in light repairs and offering other new products and services.
“By extending the role of JAX Tyres, we will solidify our position as a global top-tier brand,” said Seung Haw Suh, chairman and Global CEO, Hankook Tire. “Additionally, we will concentrate more on enhancing global competitiveness by diversifying the business in the automotive sector based on organic growth of JAX Tyre.”
“This deal combines Hankook Tire’s global position and the JAX Business model, and is a well-timed opportunity as vertical integration is a current market trend,” said Board. “Through the power of online and B2B/B2C opportunities we look forward to the all the possibilities this agreement will bring in both Australia and across the globe.”
