Michelin announced that it has acquired 88% of PT Multistrada Arah Sarana TBK (Multistrada), a tyre manufacturer based in Indonesia, for USD 480 million. The transaction was completed in line with the terms announced on January 22, 2019 and after obtaining all of the necessary approvals, Michelin says in a Press release.
With a production capacity of more than 180 thousand tonnes (11 million passenger car tyres, 9 million two-wheel tyres and 250 thousand truck tyres), Multistrada generated net sales of USD 281 million in 2017. With this transaction, Michelin will also gain a 20% stake in the successful retailer PT Penta Artha Impressi and 50 hectares of available land. This will help Michelin to strengthen its presence in the highly promising Indonesian market by acquiring two powerful local brands (Achiles and Corsa) and a very competitive local plant with good quality facilities and immediately available production capacity. Leveraging its technical expertise, with limited new investment, Michelin will gradually convert production from Tier 3 Passenger car tyres to Tier 2 Michelin Group brands, thereby allowing more Tier 1 production at other Asian plants and supporting growth in demand for Tier 2 volumes in Europe, North America and Asia, Michelin adds.