Magna Tyres Group, a second-tier Off-The-Road (OTR) tire supplier, has acquired the Australia-based company Fennell Tyres International. Financial details were not disclosed.
Fennell Tyres International is known for its competitively priced, high-quality OTR, mining and TBR tire solutions. Magna Tyres recognizes the demand for high-quality, off-the-road tires in Australia and the value of a long-term relationship with customers. Magna Tyres’ main goal is to strengthen its position worldwide. The acquisition provides additional growth opportunities and increase on tire volume. It also fulfils the long-lasting desire to support Australian customers with full-service tire solutions.
Michael de Ruijter, CEO and President of Magna Tyres Group, said in a statement, “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 Euros within five years and strengthen our position as the largest second-tier supplier of off-the-road tires and service provider in the world.
“The acquisition shows that Magna Tyres is on the right track to achieve this goal and that there will be more acquisitions in the near future,” he added. “This addition to the worldwide footprint of Magna Tyres gives the global turnover a boost. The net sales of Fennell Tyres International is approximately AUD 20 million plus.
“We are excited that 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. We listen to our customers and always try to support them with the best tire solutions. Our goal is to establish a long-term partnership rather than a short-term success,” concluded de Ruijter.
Formed in 2005 including current director’s Aldo Gismondi and Bruce Walker, Fennell Tyres International provides on-site earthmover and Truck tyre services for mining, transport and civil contracting operations and equipment. The professional and safety conscious service personnel have numerous years of industry experience. They provide the right advice and the right product at the right price. All the employees will join Magna Tyres Group upon completion of the transaction.
Aldo Gismondi, managing director of Fennell Tyres international, added, “The relationship between Magna Tyres and Fennell Tyres International has been evolving for many years now and it was only natural that the synergies that both companies share has brought us together.”