Pirelli signed an agreement to acquire 100% of Hevea-Tec, one of the largest independent processors of natural rubber in Brazil. The operation will be on the basis of an enterprise value of around 21 million Euros (approx. $22.8 million), subject to adjustments at closing, Pirelli said. Approval from antitrust authorities is expected to take place by the end of 2023.

With the acquisition of Hevea-Tec, Pirelli will increase its supply of natural rubber in Latin America ensuring continuity of provision in the region and, therefore, greater efficiency, the company said. Pirelli has plans to increase Hevea-Tec’s production volumes.

Pirelli said the acquisition will allow it to facilitate the launch of natural rubber projects aimed at increasing the use of non-fossil-based materials in the tires, in line with the company’s goals. In terms of sustainability, the acquisition of Hevea-Tec will also enable the company to further improve its control over the natural rubber supply chain, reduce CO2 emissions, thanks to local-for-local supply, and launch new FSC certification projects, Pirelli said.