Tyre-giant Michelin has acquired the UK online tyre retailer Blackcircles.com for £50 million.
A spokesman for Michelin said it was “business as usual” for Blackcircles customers and the brand name would remain, as would the current management team.
Based in Edinburgh, Blackcircles.com generated £28 million in revenue in 2013. Blackcircles is run by founder and chief executive Mike Welch. BusinessCar understands Welch has been incentivized to remain to run the business.
Michelin said the acquisition was driven by its intention to increase its online business in addition to its 40% stake in Allopneus, the French online tyre sales company.
Michelin said the deal with Blackcircles will enable it to improve its mix of distribution channels in the UK and develop an even stronger relationship with its traditional tyre distributor, ATS Euromaster.
Welch said: “The strength of the Michelin Group will allow us to underpin the multi-brand offering that we deploy in each garage, on every street corner.
“I am convinced that our teams, our customers, our garages and our suppliers will rapidly start to see the benefits of this partnership.”
Blackcircles.com created a fleet division, which is “dedicated to business vehicles”, in March this year.The business appointed Martin Towers as its director of corporate sales to lead the new fleet business.
