Private equity firm invests in Titan International
According to filings submitted to the US Securities and Exchange Commission, private equity firm MHR Fund Management has acquired nearly five per cent of Titan International’s shares and has options to boost its holdings to 10.9 per cent. On 9 January, MHR purchased 2.6 million shares in the tyre maker for approximately US$39.5 million. In addition, the company paid almost $28.2 million for options that give it the right to buy 3.24 million more shares for $26.3 million.
Bridgestone wins trademark lawsuit against Chinese firms
A Chinese court has ruled that a tyre maker’s use of the Besttone name and a logo similar to that of the Bridgestone tyre brand constitutes trademark infringement. As a result, production and sales of the Besttone brand must now stop and Chinese firm Shenzhen Momentum Star Tyre Co., Ltd. and its affiliate Hangzhou Hangyou Rubber Products Co., Ltd. must pay Bridgestone damages.
£3.5m investment to support Dmack PCR, TBR, motorsport range expansion
Carlisle-based tyre brand Dmack has secured an investment of £3.5m from private equity managers Maven. The injection of funds will help to fund the next stage of its growth, according to Dmack, boosting its production capacity and range of road-going and motorsport tyres.
As reported yesterday, The Reifen show looks set to find a new home in Cologne from 2018 onwards. The reason local publication the Westdeutsche Allgemeine Zeitung gave for this change of location after half a century in the German city of Essen was the local referendum on renovation plans for the Messe Essen site – 50.4 per cent of residents voted against the €120 million investment to modernise the exhibition facility. However our German sister publication Neue Reifenzeitung has learned that the move to Cologne would have occurred no matter what the referendum’s outcome was.
French Prime Minister Jean-Marc Ayrault and Minister of Industrial Renewal Arnaud Montebourg have welcomed the end of the long-term standoff over Goodyear’s Amiens Nord factory. In a statement issued on 22 January, Montebourg expresses confidence that the signing of a deal between Goodyear management and representatives of the CGT (Confédération générale du travail or General Confederation of Labour) union will end the plant’s occupation and seven years of tension.
Marangoni appoints PwC to sell its Anagni car tyre plant
Marangoni Group has appointed PricewaterhouseCoopers Corporate Finance (PwC) as its financial advisor to assist with the companys sales of its car and light truck tyres plant in Anagni near Rome.
A famous saying posits that nothing is certain except for death and taxes, but Nokian Tyres may argue that taxes and then further taxes are more certain. Following on from the reassessment and €26.9 million bill received in December for the 2007 financial year, Nokian Tyres announced on 21 January that Finland’s Tax Administration has also reassessed Nokian’s tax for the years 2008 to 2010. According to this reassessment, the tyre maker must pay an extra €73.3 million tax and interest (€51.0 million of which is tax) for these three years. Payment must be made in February 2014.
Strategic investment group buys controlling interest in Kings Road Tyres Group
A controlling interest in Kings Road Tyres Group (KRT) has been acquired by a strategic investment group with members in China, Europe and North America. The UK management team, which bought out the company in the second half of 2011, will “continue to retain a significant equity position in the company and will maintain responsibility for day-to-day operation of Group businesses,” said a statement issued to Tyrepress by KRT today. The company said that the deal would “secure significant new equity investment” for KRT, which it said would help it develop its position as one of the leading players in the UK tyre industry.
Sustainable materials company Lehigh Technologies Inc. has strengthened its research and development capabilities by investing in new mixing and analytical equipment for its Application and Development Center (ADC) and through the appointment of Chad Jasiunas as technical manager for functional materials. This expansion enables Lehigh to further promote the adoption of its sustainable micronised rubber powder (MRP) material in green tyre applications.
Cooper the target of securities class action lawsuit
A securities class action lawsuit has been filed against Cooper Tire & Rubber and certain of the company’s senior executives by a number of investors. The lawsuit was filed in the US District Court for the District of Delaware. The complaint alleges that Cooper violated the federal securities laws by issuing a series of materially misleading statements and omissions in connection with the proposed acquisition of the company by Apollo announced on 12 June, 2013. In addition, the complaint alleges that Cooper misrepresented Coopers financial condition, financial prospects, and the effectiveness of the Companys internal controls.
Micheldever extends GT Radial Exclusive Distribution Agreement
Giti Tire and Micheldever Tyre Services have renewed their Exclusive Distribution Agreement (EDA), extending the wholesaler’s sole UK supply rights for GT Radial passenger car, 4x4 and light truck tyres for the next three years. Under the terms of the agreement, which began in 2010, Micheldever will continue to develop the GT Radial Performance Centres (GTPCs) network as a priority while utilising the product offering to expand other wholesale and VMA business.
The lawsuit brought against Goodyear Tire & Rubber by the Works Council at the company’s Amiens Nord factory in France and the factory’s union representative, Michael Wamen, has been dismissed by the United States District Court in Ohio. Referring to a host of precedent cases, Judge Sara Lioi determined that Goodyear neither breached agreements made with the Amiens plant workers nor did it fraudulently represent reductions in plant output as temporary measures.
The European Tyre and Rubber Manufacturers Association (ETRMA) suggest the 2013 tyre replacement market stabilised in 2013 after a shaky start to the year. According to figures published 16 January, the car segment contracted 1 per cent to 192.699 million units in 2013. Total truck tyre sales were put at 8.849 million.
More than a million new Delticom customers in 2013
During the course of last year more than a million new customers purchased tyres through Delticom’s online portals. And for the first time in the company’s history, the number of repeat purchasers also passed the half-million mark.
Figures released by the ACEA show that, with a 13.3 per cent increase in new car registrations in December 2013, the EU recorded the largest monthly year-on-year growth since December 2009 (+16.6 per cent). However, in absolute figures, the results were the third lowest to date for a month of December with a total of 906,294 units.
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