Michelin has acquired internet tyre sales company Blackcircles.com for a sum of £50 million.

Blackcircles.com generated £28 million in revenue in 2013. The Edinburgh-based businesss has experienced growth of around 20% per annum since 2008, thanks largely to its 'Click and Fit' formula, which includes the sale of the product and the service. In the first quarter of 2015 revenues were up 34% compared to Q1 2014. 

Michelin said that the acquisition of Blackcircles.com will enable it to improve the performance of its mix of distribution channels in the UK and in particular, to develop synergies with its traditional distributor, ATS Euromaster.

It follows the acquisition in mid-April of a 40% stake in Allopneus, the French online tyre sales company, and is part of Michelin's e-commerce strategy. 

Jean-Dominique Senard, CEO of the Michelin Group, said: "Our strategy illustrates our ambition: to be ever more innovative, efficient and proactive for our customers by offering them products and services suited to individual needs, and by simplifying the entire purchase process, from choosing their tyres to having them fitted by professionals."

Founder and CEO of Blackcircles.com Mike Welch said: "I'm delighted to have found in Michelin a partner who shares our passion for customer service, innovation and technology. 

"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."

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