Michelin has acquired UK-based online tire sales company Blackcircles.com for £50m (US$78m).
Blackcircles.com has enjoyed growth of around 20% per year since 2008, thanks largely to its Click & Fit formula, which includes the sale of the product and the service. In addition, in the first quarter of 2015, revenues were up 34% compared to Q1 2014.
Michelin believes this development is likely to continue apace in the years to come, mainly due to the boom in e-business in the UK and the expected consolidation of the leadership position already held by Blackcircles.com.
The acquisition of the Edinburgh, Scotland-based retailer will enable the tire maker to improve the performance of its mix of distribution channels in the UK, and in particular, to develop synergies with its traditional distributor, ATS Euromaster.
Mike Welch, founder and CEO of Blackcircles.com, said, “I’m delighted to have found in Michelin a partner who shares our passion for customer service, innovation and technology.
“The strength of the Michelin Group will enable us to underpin the multi-brand offering that we deploy in each garage, on every street corner. I am convinced that our teams, our customers, our garages and our suppliers will rapidly start to see the benefits of this partnership.”
May 13, 2015
