Focus on Europe: Delticom sells North American business

On 14 January, Delticom AG signed a contract for the sale of its majority shareholding in Delticom North America Inc. with Tire Capital LLC. The Hannover, Germany-based online tyre company expects to receive between US$7.5 million and $8 million for its 75 per cent stake in the US subsidiary, the sales price being subject to customary market adjustment mechanisms. Delticom anticipates a finalisation of the contract in the second half of February.

Delticom’s stated focus for the coming years is on expanding market position in Europe and concentrating investments accordingly in this European core business. “Following the successful development of a profitable e-commerce business and the establishment of the online tyre trade in the USA, the sale of Delticom’s majority stake gives the US subsidiary the opportunity to further develop the business at an accelerated pace in line with local market conditions and opportunities,” comments the company, adding that the sale of Delticom North America strengthens “both its equity base and its liquidity.”