The largest player in the USA’S tyre recycling sector will soon have a new owner. Global investment firm The Carlyle Group has agreed to sell Liberty Tire Recycling to ECP, a 2005-founded investor across energy transition and decarbonisation infrastructure assets. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021. The parties have not disclosed financial details.
Northern Ireland-based Kerr’s Tyres Group has bought MW Tyres & Exhausts for an undisclosed sum. MW Tyres & Exhausts has been rebranded as MW Tyres & Auto and will now offer the 24/7 365 UK & Ireland coverage offered by Kerr’s Tyres Group. As a result of the acquisition, Kerrs Group now operates from 12 sites in Northern Ireland and four sites in the Greater Dublin region. Look out for our May edition to see how this affects Kerr’s Tyres’ position in our annual tyre retail ranking.
At the unveiling of its ‘Michelin in Motion’ strategic plan on 8 April, the Michelin Group presented a strategy for 2030 that shows a determination to expand in non-tyre businesses. In this spirit of expansion beyond tyres, yesterday the company announced the signing of a Partnership Agreement with Altaris Capital Partners.
Braking specialist Juratek Ltd has acquired Bradford-based independent distributor Bettaparts Ltd. Terms of the deal have not been disclosed. Bettaparts will remain at its Bradford site, serving its existing customer base and Juratek has said that there are no plans to distribute its own branded products through the new site as the companies will operate separately.
Bridgestone Corporation reports that its Bridgestone Americas, Inc. subsidiary has completed the sale of Firestone Building Products to Holcim Participations (US) Inc, a subsidiary of LafargeHolcim Ltd. (LafargeHolcim). According to the Japanese company, the US$3.4 billion transaction will “advance Bridgestone’s efforts to deliver value to customers and society as a global leader providing tyres and advanced mobility solutions.”
Halfords’ recent acquisition of Universal Tyres follows the acquisition of McConnechy’s Tyre Service Ltd for £8.5 million and Tyres on the Drive for £746,000 back in November 2019. The combination of the McConnechy’s and Universal purchases means Halfords now owns two of the three founding firms of ULM Services Ltd, a fleet servicing business that Universal establishing in partnership with McConnechy’s and Lodge tyres back in 2017. At the same time, Universal runs its own tyre wholesale business. So, what does the latest acquisition mean for the Universal Tyre Wholesale operation? And how was McConnechy’s commercial business folded into Halfords? For that matter, how will the businesses be integrated in general? And what does this all mean for ULM?
Halfords has extended its reach into the UK tyre retail space with the acquisition of Universal Tyre and Autocentres for £15 million. Kent-based Universal has 20 garages and 89 commercial vans operating in the South East and on the east coast of the UK. Universal also operates 1 warehouse/head office and from 5 other sites. The company specialises in the supply and fit of tyres for a wide range of vehicles, from cars to commercial and agricultural vehicles. Universal branches also offer general car maintenance and repairs such as brakes, servicing and MOT.
KW automotive GmbH intends to acquire wheel manufacturer BBS, and signed a contract to this end late last year. The deal is still subject to a number of contractual conditions that should be met in the near future. The company anticipates taking over the BBS brand in June 2021 together with a minority shareholder, entrepreneur Mathias R. Albert. The parties have agreed not to disclose the purchase price.
Ryan Patterson has been appointed as senior vice president, Business Integration of The Goodyear Tire & Rubber Company. The role, which Patterson took on in March 2021, means leadership of the integration Cooper Tire, which Goodyear is purchasing.
With the addition of the Cooper Tire business, Goodyear will return to the global number three ranking in passenger car and light truck (PCLT) tyre volumes in 2021. After previously holding the clear number three ranking behind the world’s largest tyre manufacturers, Bridgestone and Michelin, Goodyear was joint third with Continental in both 2017 and 2018. In 2019, Goodyear fell behind Continental to fourth position in 2019 and 2020. Working on a pro forma basis combining original equipment and replacement market tyres, Astutus Research data reveals some interesting facts about the nascent conjoined organisation, with reference to their largest tyre business segment in terms of volume.
Online tyre retailers Tirebuyer and Tirescanner have merged to create a new Tirebuyer.com that will be led by president and CEO Michael Welch OBE, who formerly founded Blackcircles and then Tirescanner. ATD (American Tire Distributors), Tirebuyer’s parent company, is the largest tyre distributor in the world. The new Tirebuyer will operate over 11,000 installer partner locations across the USA. According to the company, Tirebuyer sales day one are in the high eight-figure range. “We expect to climb sales to multiple nine figures over the coming years”. There is even talk of hitting the billion-dollar turnover mark.
Goodyear’s $2.5 billion-dollar acquisition of Cooper is the biggest tyre industry news story of 2021 so far (click here for detailed analysis of the deal itself). But takeovers – especially those this big – are seldom easy. A large portion of the motivation behind the acquisition is to bolster Goodyear’s position in the high-value 4×4 and SUV tyre segments. So, with this in mind, what kind of terrain is the deal likely to encounter as the two companies make their way towards integration?
Cooper Tire wasn’t initially looking to sell when Goodyear chief executive Rich Kramer approached the company, Cooper’s president and CEO told journalists in a virtual press conference on 22 February 2021. Rather, Cooper’s management and board were convinced by Goodyear’s “compelling offer” and “strategic logic”. So, what exactly was it that convinced Cooper’s leadership team?
Explaining the rationale behind Goodyear’s multi-billion dollar acquisition of Cooper Tire, executives said the combination offers “compelling strategic and financial benefits”. Specifically, they suggested the transaction “further strengthens Goodyear’s leading position in the US, while significantly growing its position in other North American markets.” With just two home-grown domestic tyremakers in the US (Goodyear and Cooper), that much is clear. However, the benefits of the announced merger are not limited to North America. In China, the combination will almost double Goodyear’s presence. According to Goodyear, it will also increase the Akron, Ohio-based tyremaker’s OE tyre supply position, while creating broader distribution for Cooper replacement tyres through Goodyear’s network of 2,500 branded retail stores.
The Goodyear Tire & Rubber Company and Cooper Tire & Rubber Company have made “a definitive transaction agreement” that will see Goodyear buy Cooper for roughly $2.5 billion. The combined company will have approximately $17.5 billion in pro forma 2019 sales. Upon closing of the transaction, Goodyear shareholders will own approximately 84 per cent of the combined company, and Cooper shareholders will own approximately 16 per cent.
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