Bandag Shareholders Approve Sale

Bandag Inc. held their final shareholders’ meeting on April 3, at which shareholders approved the sale of the retreader to Bridgestone Americas Holding, subsidiary of the Japanese tyre major, for US$1.05 billion. Bandag will become part of the US Bridgestone operation once the deal closes, which is expected to take place during the second quarter. Bandag spokesman Bill Block said the companies are awaiting regulatory approval in Europe and Canada before the deal is completely finalised, but anticipate no complications.

The shareholders’ meeting was presided over by Bandag CEO Martin Carver, who stated that “Today’s action by our shareholders marks an important milestone toward the completion of the proposed merger.” Mr. Block later reported that during the proceedings 88.9 per cent of common stock shares and 81.4 per cent of class A shares were voted in person or by proxy. Details of the vote total were not immediately released, but Block confirmed that a majority of the shares represented approved the sale.

The acquisition of Bandag, founded half a century ago by Carver’s father, Roy Carver, was announced on December 5, 2005. The company has manufacturing plants in Belgium and North and South America, with corporate headquarters located in Muscatine, Iowa. Bridgestone have confirmed their intention of maintaining Bandag’s corporate structure and headquarters following the takeover. Martin Carver will serve in the capacity of consultant to Bridgestone during an initial transition period. He is reported to have called the sale a “golden opportunity” for Bandag employees, customers and dealers to continue to prosper.