Pirelli expands distribution network in Brazil

Pirelli Tyre S.p.A. has announced a new deal that will expand its distribution network in Brazil by integrating one of the country’s leading tire chains into its own Pneuac distribution subsidiary. With this agreement, Pirelli anticipates Pneuac’s annual sales will grow to 1.3 billion reals ($550 million) by 2014. Financial terms were not disclosed.

Under the deal, Pirelli will integrate the Abouchar tire sales network, which consists of 29 points of sale, into its network of 104 existing Pneuac outlets. Abouchar is owned by the Comolatti Group through the Distribuitora Automotiva company. The deal involves an asset swap, with Distrbuidora Automotiva acquiring a stake in Pneuac while contributing the Abouchar chain.