Latakko will become part of the Nordic Tyre Group.
Publication Dienas Bizness 04.10.2021
Latakko Ltd, one of the largest independent tyre wholesalers and retailers, will become part of the Scandinavian Nordic Tyre Group.
This is according to information provided by the company. The transaction is subject to the approval of the market watchdog. The transaction was advised by Auctus Capital (M&A advisory) and drill (legal advisory).
The amount of the transaction is not disclosed.
"Following the Group's successful performance in the Scandinavian market, we are pleased to continue to achieve our goals in the Baltics. We are committed to further strengthening our position in the Nordic and Baltic countries and are ready to invest our resources accordingly," says Mats-Ove Eriksson, CEO of Nordic Tyre Group, commenting on the transaction.
"Becoming part of the Nordic Tyre Group will enhance the range of products offered to Latakko's customers and improve customer service by leveraging best practices among the Group's companies. The cooperation will also provide a wider and stronger distribution network for the Group's suppliers. As a co-owner in the new group, I will contribute to the success of the new majority owner," explains Evgeny Kopilkov, owner and director of Latakko Ltd.
Magnus von Haartmans, CEO of Nordic Tyre Group Finland, says: "Latakko and the position it holds in the Baltic market is, in our opinion, really impressive. "The success is based on a knowledgeable and dedicated team, focused on delivering high quality products and services to both customers and partners. I will be working closely with Latakko and look forward to getting to know the team and to a successful cooperation across all countries," says Magnus von Hartmann.
Covering the whole region
The Nordic Tyre Group consists of the wholesaling companies Gummigrossen (Sweden), RengasDuo (Finland) and the recently added Starco nu Gummi-Centralen (Norway). Dekkateam and Dekk1 together form the leading independent tyre retail chain in Norway, with 55 company-owned and 90 partner stores, distributing products throughout the country. Together with Latakko, Nordic Tyre Group will have a turnover of more than EUR 320 million, selling more than 3 million tyres per year, becoming the largest independent tyre and wheel distributor in Norway, Sweden, Finland and the Baltics.The strategic cooperation between Latakko and Nordic Tyre Group will further enhance and develop the products and services offered to the Group's customers and suppliers. Nordic Tyre Group has invested heavily in a proprietary IT platform in recent years, which is the most efficient ordering and delivery system in the industry, the company said in a statement.
An impressive player
Latakko Ltd. is a tyre wholesaler not only in Latvia, but also in Lithuania and Estonia, and in Latvia it also sold its products at retail. According to data in the Lursoft Ltd database, in 2020 Latakko Ltd had a net turnover of EUR 70.22 million, employed 152 people and paid EUR 6.31 million in taxes to the state. The company sells more than 1 million tyres annually. The company's head office and central warehouse are based in Riga, while there are local offices in Lithuania and Estonia. In Latvia, Latakko retails tyres in 6 stores.
"This transaction fits perfectly into Nordic Tyre Group's growth strategy and the addition of Latakko provides strong synergies with existing business processes and strengthens our position in the region, says Eriks Reņģītis, Partner at Auctus Capital, a corporate finance advisory firm, who acted as exclusive advisor to Latakko together with the law firm drill.