National Tyre & Wheel (ASX:NTD) has agreed to distribute Dunlop Tyres in Australia and New Zealand.

The agreement is expected to generate an additional annualised group revenue across both countries estimated at A$118 million.

The distribution agreement is projected to be accretive to earnings per share from the fourth quarter of 2024.

The distribution of Dunlop Tyres is expected to start in New Zealand in November 2023 and in Australia by April 2024.

The company also anticipates that the distribution of Dunlop tyres will be carried out with a modest increase in fixed costs.

National Tyre & Wheel (ASX:NTD) is a company involved in tyre distribution and auto services.