Hankook acquires 100% shares in Australia’s JAX Tyres.
Australia’s JAX Tyres is now entirely owned by Hankook Tire. On 23 January, the South Korean firm acquired a 100 per cent stake in the franchise network of tyre retailers from its principal shareholder, company chairman Fred Hurrell, and others. The deal covers 83 outlets in the eastern states of Australia. While Hankook Tire hasn’t disclosed the sum it paid for JAX Tyres, Pulse shares that market observers estimate a KRW 100 billion (£68.8 million) price tag for the transaction.
Hankook Tire intends to adopt a franchise system for its distribution network in the Asia region as part of its global efforts to strengthen its competitiveness in the B2C distribution sector. “We will solidify the position as the global top tier brand by extending the role of holding company,” commented Seung Hwa Suh, vice-chairman and chief executive officer of Hankook Tire. “We will concentrate more on enhancing global competitiveness by diversifying the inorganic business in the automotive sector based on organic growth of tyre.”
The JAX Tyres network deals in premium, mid-range and budget tyres and sells both Hankook Tire’s flagship brand and its second line, Laufenn, which debuted in Australia in the second half of 2016. Price transparency is the order of the day at JAX Tyres, with prices for each individual tyre shown and updated in real time on the JAX website; online prices are also the prices paid when buying tyres from an outlet.