Magna Tyres has acquired Australian-based Fennell Tyres in a major expansion step for the Dutch suppliers.
Magna Tyres Looks to Australian Solutions Provider for Expansion
Fennell Tyres International is known for its competitively priced, high-quality OTR, mining and TBR tyre solutions. Magna Tyres recognised the demand for high-quality OTR tyres in Australia and the value of a long-term relationship with customers while also thinking about how an acquisition with the Australian solutions company would strengthen its global position. The acquisition provides additional growth opportunities and tyre volume increases while fulfilling the long-lasting desire to support Australian customers with full-service tyre solutions.
Michael de Ruijter, CEO-President of Magna Tyres Group, said, “we were attracted to Fennell Tyres International by the common vision on expanding both companies and product portfolios. Our goal is to increase sales to EUR 600 million within five years and strengthen our position as the largest 2nd-tier supplier of Off-The-Road tyres and service provider in the world.’’
Adding that the deal opened up a new direction for the company, he added, “We are excited that the combined company will collaborate on improving tools and technologies with both companies confident this combination will enable us to provide better service for our current and potential customers. We listen to our customers and support them with the best tyre solutions. Our goal is to establish a long-term partnership rather than a short-term success.’’
“The relationship between Magna Tyres and Fennell Tyres International has been evolving for many years, so it was only natural that the synergies that we share brought us together," added Aldo Gismondi, Managing Director of Fennell Tyres international.
Fennell Tyres was formed in 2005 and provides on-site earthmover and truck tyre services for mining, transport and civil contracting operations and equipment. All the employees will join the Magna Tyres Group upon completion of the transaction.