Pirelli acquires majority share in Brazilian distributor
Pirelli has signed an agreement to acquire 60 per cent of the company equity in Campneus, one of Brazil’s major tyre distribution networks for approximately 54 million real (£17.1 million), subject to adjustment on the basis of the asset situation on the closing date. The share has been obtained from the Faria da Silva family, who established Campneus in 1975 with assistance from Pirelli’s Brazilian subsidiary. The agreement is subject to approval by CADE, the Conselho Administrativo de Defesa Econômica brasiliano, and finalisation is expected at the end of the first half of 2012.
In line with the 2012-2014 industrial plan Pirelli presented in London last November, with this operation the tyre maker intends to strengthen its leadership position in the Brazilian market in the areas of retail and wholesale distribution, focusing on the higher growth premium segment; to this end, the deal will increase the number of Pirelli-owned (Pirelli Pneuac) retail outlets from 48 to 102.
The 54 Campneus outlets included in the agreement are already part of Pirelli’s distribution network in Brazil, which counts over 600 points of sale in total. The Campneus stores, which will retain their brand name even after the closing of the operation, are located in the states of São Paulo, Minas Gerais, Paraná, Mato Grosso do Sul, Santa Catarina and Rio Grande do Sul. They sell the complete range of Pirelli tyres for cars, light trucks, trucks, buses and agricultural machinery, as well as for earth moving and off-road equipment.
At present, Campneus employs around 600 people in seven Brazilian states. Pirelli has five tyre production factories in the country: Gravataí Campinas, Santo André, Sumaré and Feira de Santana. The company employs around 9,000 people in its Brazilian plants and has its own testing grounds in Sumaré city for its research and development activities.