
Reiff Reifen files for insolvency
Reiff Reifen has filed for insolvency, according to a filing with Frankfurt's district court of 11 February 2020, marking the third insolvency filing of a Germany-based company in Bain's European Fintyre Distribution Group.
Group subsidiary Reifen Krieg also filed for insolvency according to a filing on 6 February 2020. Reifen24, which is managed by Reifen Krieg, filed for insolvency on 11 February. Miguel Grosser has been appointed as insolvency administrator for both companies, according to the filings.
Bain announced in October 2017 that it was creating a European tyre distribution group under a holding company via strategic acquisitions of tyre wholesale and retail companies, pursuing a market consolidation strategy. The group of companies is now known as European Fintyre Distribution and is headquartered in London.
Bain bought a 90% stake in Italy-based Fintyre in March 2017 via Bain Capital Europe IV, which held a final close in October 2014 on €3.5bn. The GP secured a debt package from Blackstone's credit arm, GSO Capital Partners, and a rolling credit facility from HSBC.
The company bought family-owned distribution company Reiff Group's tyres and automotive technology group, Reiff Reifen und Autotechnik, in June 2017.
The company also bought Germany-based Reifen Krieg in June 2018. Media reports at the time said that €650m of Fintyre's €1.1bn turnover would be generated in Germany following the acquisition.
European Fintyre Distribution announced the acquisition of Germany-based Rs Exclusiv Reifengrosshandel and Tyrexpert Reifen and Autoservice in May 2019. The company said in a statement that it had recorded 2018 turnover in the German market of €740m.
According to Fintyre's website, Reiff Reifen und Autotechnik manages the distribution platforms NETTO, A/B/S Autoservice, Tyre1 and ReifenDiscount.de. Fintyre also operates the Secura and Duro retail networks.
Bain had not responded to a request for comment at the time of publication.
Germany's automotive sector has struggled to adapt to technological changes and demands in recent years, with the transition away from combustion-based engines and towards electric cars and fuel cells causing problems for original equipment manufacturers and retailers alike. According to Unquote Data, 2019's one exit from an automobiles and auto parts company from private equity came in the form of Ardian-backed Weber Automotive's insolvency in July, as reported by Unquote.
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater