Pigma is in the process of acquiring tire wholesale distributor LLC Trade House Megashina, and the combined deal will strengthen Amtel-Vredestein’s position in Russia’s tire manufacturing, distribution and retailing sectors, the company said.
The merger of AV-TO and Pigma/Megashina is expected to create a company with sales of around $250 million.
Pigma sells more than 27,000 auto components from some 40 producers to more than 1,500 customers throughout Russia and the CIS. It operates a network of seven tire service retail centers in Nizhny Novgorod, which it already sold to Amtel-Vredestein in March.
Megashina serves more than 500 tire retailers, auto dealers and auto service stations and operates 14 offices and warehouses.
“By combining these complementary businesses and their experienced, hands-on executives into one group we have built a more robust, a more dynamic and a more self-sufficient company, capable of developing both its wholesale and retail operations,” commented Amtel-Vredestein CEO Alexei Gurin.
Pigma’s senior directors, Mikhail Pigaev and Nikolai Makarov, will remain with the company. “By joining forces with an industry leader, we will be able to accelerate our plans to expand and enhance our business. And, in turn, we can use our experience to assist Amtel-Vredestein in further developing its distribution and retail network,” Pigaev said.
