Apollo confirms acquisition of Dunlop International

Mumbai, India - Apollo Tyres Ltd has announced its intention to buy Dunlop Tyres International (Pty) Ltd (Dunlop South Africa) in an all

cash deal for 100% equity worth about Rs 2900 million (Euro 55 million). Dunlop Intl reported a turnover of some the US$ 200 million last year. Apollo said the transaction is subject to regulatory approvals in both countries, including that of the South African Competition Commission and certain contractual and other conditions precedent to the closing of the transaction.

Company officials have been authorised to conclude agreements with the shareholders of the Durban, South Africa-headquartered company which also owns subsidiaries in Zimbabwe and the United Kingdom.

Speaking on the acquisition after a Board meeting, Onkar Kanwar, Apollo's chairman & managing director said: We have been in close contact with the Dunlop management for some time and have been very impressed with their range of products and the professional manner in which the company is managed. Their commitment and desire to be a technology-driven force in the international markets is apparent from Dunlop's people, factories and distribution network. This acquisition opens up new avenues for Apollo Tyres. We will add value to Dunlop South Africa, and the combined entity will become an even stronger force to reckon with in the coming years.”

Apollo said Dunlop International's three manufacturing units in South Africa and Zimbabwe produce a full range of cross-ply and radial products - from high-end truck and bus tyres to industrial, farm, light truck, off-road and mining tyres, high-speed passenger car radials and ultra high performance car tyres. Apart from tyres made under the Dunlop brand, it is also the manufacturer of high-value brands like Regal and India; has exports to Europe, Central Asia, Australia and South America and has contract manufacturing with key international players. In addition, Dunlop SA is the sole distributor of Cooper Tyres in Southern Africa.

Like Apollo's exclusive dealerships, Apollo Tyre World, Apollo Radial World, and Apollo Pragati Kendra, Dunlop SA has over 230 exclusive multi-brand dealerships called Dunlop Accredited Distributors or DAD across South Africa and Zimbabwe. Through the acquisition, Apollo will also gain a substantial shareholding in National Tyre Services (NTS), Zimbabwe - a major tyre distributor and re-treading company. NTS has a technology tie-up with Bandag.