Should the relevant authorities grant their blessing, at the start of July German agricultural tyre wholesaler Bohnenkamp AG will take over several business areas belonging to Starco, while the Danish company will assume responsibility for certain activities currently within the Bohnenkamp portfolio.
As of 1 July, Bohnenkamp will take over the Starco Eastern Group, which covers Russia, Belarus, the Baltic region, Kazakhstan and Ukraine, and Starco’s aftermarket business in Scandinavia, Germany and the Benelux countries, excluding business with dealers and importers of passenger car tyre trailers in the Benelux. With this development, Bohnenkamp will significantly extend its product range in small tyres and will increase its market for products it already offers. Employees from the Starco aftermarket business will transfer to Bohnenkamp.
At the same time, Starco will take over Bohnenkamp’s original equipment passenger car trailer tyre business in Germany and Slovakia. Starco says this move will “significantly” strengthen its existing range in this key segment. Chief executive officer Richard Todd says the change enables Starco “to focus on supplying and servicing our original equipment manufacturer customers with clever wheel and tyre solutions, and an aligned aftermarket strategy in our remaining markets.” He adds: “With our new customer-focused organisation, we will set new standards in our key segments based on the strategic investments made into manufacturing and development over the last ten years.”
Bohnenkamp AG chief executive officer Gregor Rüth describes the transaction as a “strategy of strengths.” He shares that the two companies began discussing the deal more than a year ago, and with the changes that have now been announced they “forge a path which has been developed and negotiated with and by the chairman and principal shareholder of Starco, Peer Ejlersgaard, who recently passed away.” Starco Europe A/S chairman Carl Evald Bakke-Jacobsen adds: “It is with respect for Peer’s legacy that we now take a significant step in the direction we started shaping after Richard Todd was appointed CEO in 2015. We have been looking forward to developing the organisation to stand stronger in a highly competitive market that requires a higher level of specialised knowledge within each of our segments.”
The two companies see benefits in the arrangement and are confident it will enable them to offer a wider product range, higher product availability and an increased service level and quality in their respective business areas. “The new structure adds new insight into the market and brands for both parties and it therefore opens new opportunities. However, we are of course keeping current valuable customer and supplier relations in view.” says Rüth.
Starco will continue its aftermarket business in the UK, France, Poland, Switzerland and South Africa as before.