Best4Tires acquires German wholesaler Berlin-Tyre

Best4Tires, the tyre, rim and complete wheel firm previously known as Reifen Gundlach, has entered into a binding agreement to purchase German tyre wholesaler 1a Berlin-Tyre GmbH & Co. KG. Parent company Rivean Capital (formerly Gilde Buy Out Partners) states that this acquisition “represents another important milestone towards Best4Tires’ strategic goal of establishing a market presence throughout Germany.”

Berlin-Tyre was founded in 1990 and today employs approximately 100 people. According to Rivean Capital, the business has a strong presence in the east of Germany and is market leader in the states of Berlin and Brandenburg. It adds that Berlin-Tyre “stands for a comprehensive product range and a high level of service orientation and quality” and can “look back on a history of continuous growth” thanks to the “entrepreneurship and vision” of its founder and managing director Michael Lehmann.

More than half of Berlin-Tyre’s sales are currently generated through the business’s online portal. Rivean Capital believes that in Berlin-Tyre, Best4Tires has found an “ideal partner” in regards to strategy, product portfolio and corporate culture. It anticipates that the merger will benefit the customers of both companies by delivering them a further improvement in service quality, including an increase in the availability of goods, optimisation of supply, and a reduction in delivery times.

Significant expansion

“After the merger, my team and I will support the combined company in implementing the planned growth strategy,” says Berlin-Tyre founder Michael Lehmann.

Dr Peter Schwibinger, chief executive officer of Best4Tires, looks ahead to the joint future: “The acquisition of Berlin-Tyre significantly expands Best4Tires’ business for the benefit of our customers. What we have in common is the high quality of service in tyre logistics, regional strength with extensive direct deliveries and an unconditional focus on the needs of our customers. We are convinced that this common culture will be the basis for our further growth. We look forward to working with the founder of Berlin-Tyre and are impressed by his entrepreneurial life’s work. Likewise, we look forward to welcoming Berlin-Tyre’s employees as part of the Best4Tires family.”

Andreas Klab, partner at Rivean Capital, adds: “With Berlin-Tyre, we have been able to bring on board one of the leading tyre wholesalers in Germany with the broadest product range. The acquisition is another important milestone in the strategic development of Best4Tires and will significantly strengthen the company’s market presence in Germany. The acquisition of Berlin-Tyre is evidence of the attractive value creation opportunities in the fragmented market for specialised logistics services. Rivean Capital’s strength lies in identifying promising companies with strong business models and developing them in partnership with management.”

The parties have agreed not to disclose the purchase price of the transaction. The transaction is subject to approval by the competition authorities and is expected to close in July 2022. The seller Michael Lehmann was advised by Cowen (M&A) and CMS Hasche Sigle (Legal). Best4Tires was advised by Ebner Stolz (Financial, Legal, Tax).