Although Apollo Tyres, as CFO Sunam Sarkar told Indian publication Outlook Business in December, decided to pass up on the acquisition of Mexico’s Tornel, it is by no means ready to stop its global growth. The magazine reports that plans for a presence in Eastern Europe are still on the agenda.
In late December Cooper Tire & Rubber announced the appointment of Brenda S. Harmon to the position of senior vice president, Global Human Resources and Communications. In her new role, Harmon is leading all human resource and employee relations activities for the company.
Continental AG reports having already successfully completed the first “key steps” of its overall plan to improve its current financing structure and capital structure following the signing of loan agreements on December 19. The German tyre and automotive components supplier states that “important” amendments have been made to the existing loan agreements, allowing for the repayment of the 3.5 billion euro tranche due in August 2010 inter alia by a forward start facility (FSF) while also providing further flexibility. At the same time, the company has received FSF commitments in excess of the requested 2.5 billion euros, which has resulted in an over-subscription of their bank group’s request.
MITL Acquisition Corp., comprised of former GPX International Tire officials and private investors, identified itself as the winning bidder for the solid tyre business sold out of bankruptcy by GPX. The new company will operate as Maine Industrial Tire, and will be led by Bryan Ganz, CEO; Troy Kline, president and COO; and Phil Fitzgerald, director of China operations.
India’s Ruia Group, parent company of Dunlop India and Falcon Tyres, has acquired a 60 per cent controlling stake in Germany’s Henniges Automotive Grefrath GmbH, a supplier of automotive sealing systems to numerous vehicle manufacturers, including Daimler, BMW, Audi and Volkswagen. The cost of the acquisition, made through a Special Purpose Vehicle on behalf of Ruia, has not been disclosed. A further 15 per cent share in the acquired company now rests in the hands of Henniges director Juregen Hein, while administrator Wolf Von Der Fecht owning the remaining 25 per cent stake. Ruia Group chairman Pawan K Ruia told Dow Jones Newswires that the group has a call option to buy back the shares held by Fecht and Hein.
As a result of Alliance Tire Group’s purchase of worldwide rights to the Galaxy brand from GPX International Inc., Trelleborg Wheel Systems will consequently stop distributing Galaxy-brand off-the-road tyres in Europe. Trelleborg states it continue to support its customers with the Galaxy brand until the new owner takes over.
Tecalemit Garage Equipment has secured the UK distribution rights for two well-known European brands of lifting equipment. The Devon based firm is now the sole UK distributor of the range of high specification, heavy duty hydraulic, commercial vehicle lifts produced by Germany’s Walter Finkbeiner GmbH. The Finkbeiner range of hydraulic lifts covers three main product groups; the FHB 3000, a mobile wheel-free vehicle lift suitable for cars and vans up to 3000kg; the HDS bus, coach and truck lifting system, incorporating a patented space saving platform design (capable of lifting vehicles up to 18m long and 50t gross weight) and the EHB mobile column lifts, which now incorporate the EHB /DC cable–free system.
PAI, the French private equity fund has owned Kwik-Fit since 2005, is reportedly planning to inject £20 million (22 million euros; $33 million) into the UK’s leading tyre retailer to avoid a banking covenant breach, according to a report in the Financial Times. Kwik-Fit, which was last sold to PAI for around £800 million after seeing off fellow bidder Bridgestone, has reportedly seen a slight slowdown in sales growth in the recession and been hit by foreign exchange rates. Nevertheless the Edinburgh-based business is still expected to generate turnover of more than £900 million this year, that’s a 7 per cent growth in like-for-like sales. EBITDA is expected to drop 3 per cent to £96.3 million.
Transense subsidiary, Translogik Ltd has secured significant order for its tread depth and tyre pressure field inspection kits from Cetaris, a leading Enterprise Asset Management (EAM) provider in North America. Cetaris will now deploy the Translogik kits as part of its innovative EAM and Fleet Maintenance Solution. The system will provide its customer fleets with "real-time" mobile data capture capabilities. The announcement follows a successful pilot programme, the newly ordered kits will be deployed throughout the Cetaris network in 2010.
Indian news sources are reporting that Dunlop India is to resume production at its plant in Sahaganj from 2 December. A company press release stated that workers have been informed via a notice hung at the factory’s entrance. Its reopening had been delayed at first by the West Bengal State Electricity Distribution Company following its first suspension on 30 November, 2008. Electricity supply to the factory was delayed by deliberations over credit terms. Power was restored on 9 November following the acquisition of a bank guarantee. The plant’s medium-term closure was precipitated by the refusal of a number of workers to accept a temporary shutdown.
Translogik Ltd, a wholly owned subsidiary of RFID company Transense, has announced the purchase of intellectual property (IP) relating to Bluetooth enabled tyre inspection tools manufactured by Pneu-Logic and the trading name Pneu-Logic. Translogik paid an initial amount of £50,000 and additional payments will be made, subject to sales volumes, up to an undisclosed agreed maximum. This latest announcement follows the news (on 8 June 2009) that Translogik, Transense’s sales arm, was to distribute the Pneu-Logic made bluetooth tyre tools.
Columbus McKinnon has sold its American Lifts unit to Autoquip for a reported $2.4 million. The plant at Greensburg, Indiana will be closed and sold. The acquisition will expand the Autoquip product range, adding scissor lift technology to complement Autoquip's vertical ram lifts and dock levellers. Manufacture will be moved to Autoquip's HQ in Guthrie, Oklahoma.
Continental AG will reportedly run its long-expected 1 billion euro share offer in January. Sources told the Reuters news agency that "preparations are almost done," with the prospectus to be discussed “at a board meeting in mid-December." According to the reports, the capital increase will be less than the maximum 54 million shares agreed by shareholders, as Schaeffler fears the dilution of its 90 per cent stake, the sources said. Reuters reported that Schaeffler wants to keep its Continental stake to at least 75.1 per cent. This will apparently give Schaeffler direct access to Conti's earnings after 2012, subject to the two companies’ acquisition agreement, which was signed following the initial takeover move in 2008.
Former Continental AG CEO Manfred Wennemer’s tenure as one of five Opel Trust board members ended on November 7 following his resignation in protest against political interference over the planned sale of vehicle manufacturer Opel. According to Reuters, while Wennemer’s act of protest against the “constant interference” from German politicians in potentially embarrassing to Berlin, his resignation is however “essentially symbolic” following General Motor’s recent change of mind regarding its European subsidiary.
Solideal USA has acquired SPW Industries Inc. SPW is an Atlanta-based service provider and distributor of construction and industrial tyres, wheels and rubber tracks. Solideal said SPW’s 13 locations throughout the Southeast will compliment its own service network.
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