Altor acquires a majority stake and enters partnership with the founders of Gummigrossen and RengasDuo
Altor Fund IV (“Altor”) has signed an agreement to acquire a majority stake in Gummigrossen i Örnsköldsvik AB (“Gummigrossen”) and RengasDuo OY (“RengasDuo”) from the founders including Mats-Ove Eriksson, Torsten Pettersson and Magnus von Haartman. The founders will remain as significant shareholders of the company and continue in their respective operational management roles.
Gummigrossen and RengasDuo are the market leaders among the manufacturer-independent tire distributors in Sweden and Finland respectively. The companies have had an impressive growth with a combined turnover of ca SEK 700m in 2018.
“We are enthusiastic about the partnership with Altor and believe that an active and experienced owner will further support our aspiration to be the partner of choice for our suppliers and customers. Altor’s industrial approach and their experience with building world-class companies will contribute to our continued strong growth”, says Mats-Ove Eriksson, founder and CEO of Gummigrossen.
“We are impressed with the businesses that the founders of Gummigrossen and RengasDuo have built, and are truly excited to partner with the management team for the next phase of development. The underlying trends in the tire distribution market have resulted in a more complex value-chain and we see an increasingly strong value proposition for Gummigrossen and RengasDuo to be a strong value-adding partner to both the tire manufacturers and the tire retailers. We are highly committed to extend the strong track record of the companies to date and to build the leading tire distributor across the Nordics” says Pål Stampe, Partner at Altor.
The transaction is subject to customary regulatory approvals.
For more information, please contact:
Mats-Ove Eriksson, Gummigrossen, +46 735397590
Torsten Pettersson, Gummigrossen, +46 735396829
Magnus von Haartman, RengasDuo, +358 405301901
Pål Stampe, Partner at Altor, +47 97698923
Since inception, the family of Altor funds has raised some EUR 8.3 billion in total commitments. The funds have invested in excess of EUR 4.2 billion in more than 60 companies. The investments have been made in medium sized predominantly Nordic companies with the aim to create value through growth initiatives and operational improvements. Among current and past investments are Dustin, Byggmax, Optigroup, Infotheek, Wrist Ship Supply, Eurocater, Rossignol, Helly Hansen, SATS and Carnegie Investment Bank. For more information visit www.altor.com.