Michelin Buys Oliver Rubber for $69 million

Michelin North America, Inc. has announced that it has signed a definitive agreement to acquire Oliver Rubber Company, the Cooper Tire & Rubber Company tread rubber and retreading equipment subsidiary, for $69 million. The acquisition is subject to final due diligence as well as Federal Trade Commission and U.S. Department of Justice approval. Following the acquisition, Oliver will operate as a subsidiary of Michelin North America, Inc.

According to an official statement on the subject: “This acquisition will complement the manufacturing capability and service network of Oliver with that of the Michelin Retread Technologies (MRT) network, enabling Michelin to extend its reach in the growing commercial retreading market. In 2005 Michelin announced a major expansion of its tread manufacturing facility in Covington, Ga. and, earlier this month, the opening of a new manufacturing facility in Mexico.”

“Oliver’s manufacturing capacity, product portfolio and experienced workforce are a terrific complement to Michelin’s current retread operation,” said Luc Minguet, Chief Operating Officer of Michelin Americas Truck Tire. “We believe the two brands, managed according to Michelin’s strategic focus, will offer the North American trucking industry broader access to products and services to better meet their needs.”