Fintyre pursues itrs growth project with an acquisition in Italy
Finalized an agreement to acquire La Genovese gomme (LGg), a retailer and wholesaler.
Fintyre, no. 1 player in Italy and in the top five in Europe in the distribution of replacement tires, has finalized an agreement to acquire La Genovese gomme (LGg), company founded in 1927 by the Balduzzi family, which operates in the wholesaling, retailing and retreading of tires and assistance services.
With a network of eight sales outlets and a product range covering all the major brands, LGg is leader in Sardinia in the distribution of retread tires. In 2017 the company, which has 70 employees, generated sales of € 11.7 million.
The acquisition is part of Fintyre's development strategy, based on dimensional growth, total national coverage with retail and wholesale channels, and expansion abroad. This strategy, pursued partly through acquisitions, has accelerated in the past two years, driving the group to impressive growth.
At the end of 2015, from the Maragoni group, Fintyre acquired Pneusmarket, a company that operates in the retailing (through 40 outlets) and wholesaling of tires for cars, light transport and industrial. In 2016, it acquired Franco Gomme, with six warehouses serving 8,000 customers in north-central Italy (including Tuscany and the Marches).
In May 2017, European Tyres Distribution Limited, the parent company of Fintyre, acquired the Tyre and Automotive Technology division of the REIFF group, German leader in the multi-channel distribution of tires with four warehouses and 46 retail outlets serving over 285,000 customers.
Thanks to these deals, the group reached consolidated European sales of € 734.6 million in 2017.
“The acquisition of LGg, leading player in Sardinia, completes our national coverage and consolidates our leadership position,' declared Mauro Pessi, chairman and CEO of Fintyre. “The dimensions achieved are a valid premise for developing our presence in Europe by seizing the opportunities offered by a market still fragmented into a large number of players.”
“Entry into the Fintyre group is a source of pride for us and provides La Genovese gomme with major advantages and economies of scale from the commercial, organizational, and logistical standpoints,' declared Berto Balduzzi, chairman of La Genovese gomme. “The synergies and completion of the product range will enable LGg to strengthen its presence and its market share in Sardinia with the force of a leading group in Italy and Europe in retailing and wholesaling.”
In finalizing the agreement to acquire LGg, Fintyre was assisted by the law firm of Gattai, Minoli, Agostinelli & Partners and by PwC, while LGg was assisted by the law firm of Macciotta & Associati.
Founded in the '70s with the name Pneuservice, Fintyre (name acquired in 2008) has enjoyed accelerated growth in the early 2000s partly through acquisitions in Italy and abroad.
With over 6 million tires distributed in 2017 and eleven warehouses serving the entire country, Fintyre is now the leading Italian distributor of retread tires and among the top five in Europe. In 2017, the company generated consolidated sales of € 734.6 million.
The Fintyre product range includes all the major brands (Bridgestone, Continental, Dunlop, Goodyear, Michelin, Pirelli) and covers the various market segments (car, truck, motorcycle, and industrial and farm vehicles).
The company is headquartered in Seriate (Bergamo), has 200 employees, and works through a sales organization composed of 80 independent agents.
The chairman and CEO of Fintyre is Mauro Pessi, manager with long experience in the tire business, assisted by two general managers, Nicola Melillo (for finance and operations) and Alessandro Bruchi (for sales).
In March 2017, Fintyre was acquired by the Europe IV fund of Bain Capital Private Equity, one of the world's leading private equity firms.
La Genovese gomme
Founded at Cagliari in 1927 by Alessandro Balduzzi as the Sardinian subsidiary of Vulcanizzazione La Genovese of Genoa, and later managed by his two sons, Berto and Adriano, LGg quickly became leader of the island's tire market.
Over the years, following a policy of constant expansion of its sales network, product range, and services, LGg has covered the entire area of Sardinia with direct operations in southern Sardinia through several outlets in Cagliari province and in Elmas, where the retreading plant and major distribution warehouse are located, and northward to Oristano, Macomer, Sassari and Olbia.
With its retail network and experience acquired in over 90 years of activity, LGg can offer services and tires for all applications, from scooters to earth-moving, partly through a fleet of vans for outside assistance directly at the customer's premises.
The management of LGg consists of the third generation of the Balduzzi family (Alessandro, Daniela, Andrea, and Barbara), assuring continuity in the management of a company as La Genovese gomme, which by joining the Fintyre group intends to strengthen and improve its presence in Sardinia by expanding the range of tires and services offered to its customers.