ROME (Reuters) – Pirelli has signed an agreement to buy 100% of Hevea-Tec, the biggest independent processor of natural rubber in Brazil, the Milan-based tyremaker said on Tuesday.
The deal, based on an enterprise value for Hevea-Tec of around 21 million euros ($22.9 million) is expected to be completed by end-2023 pending approval by antitrust authorities.
The acquisition will increase Pirelli’s supply of natural rubber in Latin America, “ensuring continuity of provision in the region and, therefore, greater efficiency,” the company said in a statement.
The deal will not impact Pirelli’s 2023 net financial position target of around 2.35 billion euros, it added.
Pirelli said the Hevea-Tec purchase would also help the tyremaker further improve its control over the natural rubber supply chain and cut CO2 emissions thanks to local-for-local supply.
($1 = 0.9176 euros)
(Reporting by Gavin Jones; editing by Giulio Piovaccari)
