Magna says that Fennell Tyres International is known for its competitively priced, high quality OTR, mining and TBR (truck and bus radial) tyre solutions.
Netherlands-based Magna adds that it recognises the demand for high quality off the road tyres in Australia and the value of a long-term relationship with customers.
It adds that its main goal is to strengthen its position worldwide. "The acquisition provides additional growth opportunities and increase on tyre volume," the company said in a statement. "It also fulfils the long lasting desire to support Australian customers with full-service tyre solutions."
Michael de Ruijter, CEO-president of Magna Tyres Group, commented: “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 5 years and strengthen our position as the largest 2nd-tier supplier of Off-The-Road tyres and service provider in the world."
He added that 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.
Magna says the addition of Fennell Tyres gives its global turnover a boost. Fennell Tyres International's net sales total over A$20m (€12.6m) a year.
Formed in 2005, including current directors 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.
