The deal, with a price-tag to be determined when the transfer of Central’s properties is completed, sees the tyre retailer and distributor expand its retail operation from 45 stores to 101 across the U.K.
The proposed transaction includes both retail and commercial tyre fitting outlets and the existing Central Tyre workforce is expected to transfer across to Stapleton’s upon completion of the sale. Initially Stapleton’s plans to concentrate on integrating the new stores into its network, meaning the company will be responsible for STS Tyre Pros, STS Tyre & Exhaust and now Central Tyre-branded outlets. It is not clear if and how this might change in the future.
Stapleton’s chief executive Kenji Murai said: “We are a growing business and this latest acquisition allows us to more than double our retail network in the U.K. Our aim is to provide excellent value for money alongside great customer service, across our wholesale, dealership and retail sectors. This philosophy will be at the heart of everything we do.” Commenting on the deal, a Pirelli spokesperson stated: “This is a sizeable and complex deal, and we remain very mindful that helping the existing employees to understand the process is paramount. There will be full collective consultations carried out with elected representatives involving both Pirelli and Stapleton’s management."
Stapleton’s, which also runs one of the largest tyre wholesale operations in the U.K, has more than 70 years’ experience as the UK’s leading distributor of passenger car tyres to the specialist tyre retail trade and the car dealership sector. Its current 45 retail centres are located in the south east of England under the STS Tyre Pros and STS Tyre & Exhaust brands. The company currently employs over 750 people and the new acquisition will see the team expand to over 1,000 tyre industry professionals.
Stapleton’s is backed by the Japanese Itochu Corp., which has an annual turnover of $110 billion. Stapleton’s turned over £163 million in 2007, and are reportedly on target for £200 million in 2008. The business has eight distribution centres and provides a national service. The company is a stockist of tyres from all major manufacturers, including Bridgestone, Continental, Dunlop, Goodyear, Michelin and Pirelli and offers a full range of tyres from budget to premium, including exclusive and private brands Nexen and Prestivo.
The Central Tyre sale will affect approximately 300 employees operating in 56 retail and commercial tyre fitting outlets across the UK, plus support teams based nationwide and at the Burton head office. (Tyres & Accessories/Staffordshire, U.K.)
