The Danish private equity fund Axcel has spent a huge billion after taking control of the Swedish tire wholesaler Nordic Tyre Group.
Swedish tire giant Nordic Tyre Group has been sold to Danish private equity firm Axcel for a billion kroner. The deal marks a change in ownership of the large tire wholesaler, which operates in Norway, Sweden, Finland and the Baltics.
Nordic Tyre Group was founded in 2019 through a merger of Gummigrossen in Sweden and Rengasduo in Finland. At the time, the private equity fund Altor was behind the establishment of the company. Now Axcel is taking over the helm and plans to expand the tire wholesaler's activities to new markets in Europe.
Axcel sees great potential in the tire industry, especially in light of the increasing popularity of electric cars. Electric cars are often heavier than traditional cars and have stronger acceleration, which can lead to increased tire wear and thus a need for more frequent replacement.
– We have good experience from the industry, and we have analyzed which categories in the aftermarket will be positively affected by the electrification of cars. Tires are one of them, says Asbjorn Hyldgaard, partner at Axcel.
Although Axcel has ambitions to expand into new markets, it is not yet known which countries are in play. The partner in Axcel has not wanted to comment on specific plans for the expansion, nor whether Denmark is a potential market.
According to Swedish newspaper Dagens Industri, Axcel has paid 5 billion Swedish kronor, equivalent to 3.25 billion Danish kronor, for the tire wholesaler.
Nordic Tyre Group today has an extensive business with over 10,000 customers, 500 employees and 200 suppliers. The company has an annual turnover of around 4 billion Swedish kronor, which corresponds to 2.6 billion Danish kronor.
With Axcel as the new owner, a new phase is set for Nordic Tyre Group. The capital fund is focused on growth and sees opportunities to leverage the tire wholesaler's position in the market to create further success.
