Bringing torque to the tyre industry
Tyre distribution sounds traditional. But, trust us, this story is anything but.
When looking for possible implications driven by the shift from fossil fuelled cars to electrical vehicles, the team at Altor made an interesting discovery. Due to the higher torque in an electric car, tyres and breaks would wear out more quickly than when used by their petrol driven forebearers. Breaks was a market too small to work with. But the tyre distribution industry was fragmented and growing more complex by the day, a business that was ripe for a shake-up and consolidation.
“Looking around the tyre distribution companies in the Nordics, after a while we found a real gem. A company that had focused on developing a fundamentally different model of working, based on their own proprietary software platform. Their ways of working meant margins were clearly stronger than among peers. And, even better, it was possible to export this software as the base for other companies in the industry,” says Stian Tuv, Director at Altor.
The company with the proprietary software for tyres was Swedish distributor Gummigrossen, acquired by Altor in 2019. Building on the software developed by Gummigrossen new partnerships could quickly change the ways of working, lowering cost and increasing margins and profit. The platform automates all the company processes from warehouses via logistics to customer communication.
“The IT-platform is a very important part of the success of the Group we have built, Nordic Tyre Group. It automates work, and it has been the premier tool of integrating new partnerships into the Group. It has made integration much easier than it has been in many other Groups we have built. The platform is really the backbone of the whole business. We ended up also purchasing the IT-consultants responsible for the platform, so today we have a strong in-house development division,” says Stian Tuv, Director at Altor.
After the acquisitions in Sweden, followed by partnerships with RengasDuo and KM-RRR in Finland, Starco, Gummi-Centralen, Dekkteam and Dekk1 in Norway, as well as Lattako with business in all the Baltic states, NTG is the leading distributor and retailer for tires aimed at the aftermarkets for both private cars and trucks in the Nordics and Baltic region.
Stian Tuv, Director at Altor
“What make these deals true Altor signature cases is the string of partnerships we have set up with the founders of all the companies we have acquired along the way.”
Published: Aug 07 2022