acquisition Archives - Page 75 of 90 - Tyrepress

Posts

Plimsoll: Rising Interest Rates Have “Silver Lining”

Rising interest rates are bad news for homeowners – but they could be a lifesaver for some businesses, according to commercial analysts at Plimsoll Publishing. “Our research shows more than a quarter of UK Tyres, Exhausts & Batteries companies are in more debt than they have been at any time in their history, “ said David Pattison, senior analyst at Plimsoll. “Rising rates are a useful wake-up call. Many of the companies in question have been enticed by low interest rates and the lure of easy debt secured on rapidly rising property prices, and so have been able to cover up flaws in their business strategies – effectively buying time. There is just enough time left for these firms to look seriously at their balance sheets and change direction.”

If companies reduce their level of debt and streamline their business models, they may have a future, according to Plimsoll. Plimsoll, which has conducted independent assessments of private and publicly quoted companies for the past 20 years, has an established track record of spotting the warning signs for businesses. Nearly nine out of 10 failed companies in the UK had earned a “danger” or “caution” rating from Plimsoll in the two years before their demise.

19th June 2007/by Tyrepress Editors

EU Approves Majority Conti Holding in Matador

The EU Commission has given Continental the go-ahead for its acquisition of a majority holding in the Matador Group’s tyre, conveyor belt and rubber machinery operations, paving the way for the acquisition to be carried out once the spin-off of the “Matador Rubber Group” has been completed.

“This is an important step towards our goal of forging a stronger link to our extremely successful joint venture partner,” stated Continental’s executive board chairman, Manfred Wennemer. “At the same time it enables us to expand our production and operations base in Eastern Europe.” Štefan Rosina, CEO of the Matador Group, also expressed his satisfaction: “For us it opens up possibilities to develop further our automotive business in line with our strategy regarding new projects with automotive suppliers.”

11th June 2007/by Tyrepress Editors

Autobacs Forms Credit Line for Acquisitions

(Akron/Tire Review) Japanese automotive parts and accessories retailer Autobacs Seven Co. has established a committed line of credit capped at $822.8 million, to finance the acquisition of competitors inside and outside Japan. An agreement for the five-year commitment line was signed with an investment firm in the UK.

Autobacs will also soon set up a panel to discuss its planned acquisitions and include outside experts to obtain their advice. But the firm says it is “not yet at a point where the acquisition plans can be announced.”

Autobacs said it intends to boost domestic sales, including those at its franchised stores, to approximately $3 billion by fiscal 2008 from the fiscal 2006 level of $2.5 billion. In April, Autobacs reached an agreement to buy U.S. parts retailer Strauss Discount Auto out of bankruptcy for a price of up to $55 million.

4th June 2007/by Tyrepress Editors

Bridgestone Acquisition of Bandag is Final

(Akron/Tire Review) A celebration and press conference will be held on June 1 at the Bandag Learning Center in Muscatine, Iowa, to commemorate the completion of Bridgestone’s acquisition of Bandag.

Mark A. Emkes, chairman and CEO of Bridgestone Americas Holding Inc. (BAH), Saul Solomon, new chairman, CEO and president of Bandag and Martin G. Carver, former Bandag chairman and CEO will all be present at the event entitled “Bringing the Best Together: Bandag & Bridgestone.”

A barbecue luncheon for Bandag employees will be followed by a press conference and a tour of the Bandag retread plant. In the afternoon, Carver will hand off the Bandag Bandit racetrack to Solomon.

1st June 2007/by Tyrepress Editors

EU Commission Approves Bridgestone’s Bandag Acquisition

The European Commission has cleared Bridgestone Americas Holding Inc’s proposed acquisition of Bandag. After examining the operation the Commission concluded that the transaction “would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.” Making its decision the commission concluded that the new combined firm would continue to face strong, effective competition from companies such as Michelin, Goodyear and Kraiburg.

According to the report, the main horizontal overlap occurs between the parties with regard to the re-treading business, particularly the supply of re-treading material to independent businesses active in the re-treading of tyres. However, the Commission’s examination of the proposed merger showed that the horizontal overlaps between the activities of Bridgestone and Bandag are limited and that the transaction would not lead to major structural changes on the re-treading market.

30th May 2007/by Tyrepress Editors

The Magic Touch(less)

In recent times the name Beissbarth has become all but synonymous with their new Touchless wheel alignment system, and if the company’s presence at Brityrex was anything to go by, they don’t mind this at all. The aligner, often referred to using the words ‘revolutionary’ and ‘breakthrough’, took centre stage at the Beissbarth stand.

“This is the biggest advance in wheel aligner technology that I have ever witnessed in more than 30 years in the industry,” said Beissbarth UK managing director Philip Hodges. “Aside from pinpoint accuracy, there are enormous time savings per vehicle on the current process, which will build both capacity and turnover in all busy workshops.”

The Touchless system, previously reported by Tyres & Accessories on several occasions, is touted by Beissbarth to offer the fastest wheel alignment ever. The non-contact aligner will, they say, save up to 20 minutes on preparation time per vehicle. “There’s no wheel clamps to mess about with,” a Beissbarth representative commented to Tyres & Accessories. “The vehicle is just driven into position and the results can be seen on screen in seconds.”

25th May 2007/by Tyrepress Editors

Conti Bidding 11b Euros for Siemens VDO

German business publication Manager Magazin reports that Continental AG is bidding nearly 11 billion euros for the Siemens’ VDO automotive electronics business. According to a summary of a story scheduled for publication in the magazine’s May 25 edition, Conti’s main rival for the acquisition of the Siemens division, US based TRW Automotive Holdings, has also made a comparable bid for the business. Private equity firms KKR and Permira are also interested in acquiring the business, the magazine added.

A Siemens spokesman has reportedly stated “The preparations for the planned stock exchange listing of Siemens VDO are running full steam ahead,” No further comment was made by either Siemens or Continental, and no representative from TRW could immediately be reached for a statement.

24th May 2007/by Tyrepress Editors

Heading from Strength to Strength

Following its purchase by the TYM Group in 2004, TYM International has had a remarkably successful three years, with year on year growth forcing the company to seek new and larger freehold premises in Kings Lynn at the start of 2007. Although under new ownership TYM continued their longstanding relationship with Slovakian tyremaker Matador, and today have supplied the brand to UK wholesalers for more than a decade. It is largely thanks to TYM, in addition to the manufacturer’s links with Germany’s Continental, that Matador has left behind its former image as a budget brand in the UK.

In the last three or so years TYM has added two more key brands to their portfolio, with the company commencing the supply of Triangle Tyres products in 2004, an arrangement further cemented by the signing of a three-year deal in September 2006. “Triangle is a great product with a superb range in passenger, Truck and Earthmover,” commented TYM International general manager Steve Eke. “This complete product range has fitted well into the portfolio of our company.” A further feather in the company’s cap came at the end of 2004 when TYM was appointed as a UK importer of products manufactured by Taiwan-based Kenda Tire.

24th May 2007/by Tyrepress Editors

Borrowed Safety

Tyres & Accessories has previously reported on the problem of unsafe used tyres offered for sale in a number of African countries and the resultant risk to life and limb, and therefore we were interested to learn of one company’s plans to offer an alternative to these hazardous items. Dunlop Nigeria and Oceanic Bank International have launched a collaborative venture which they hope will make it easier for motorists to obtain new tyres rather than relying on their used counterparts.

The collaborative effort, to be known as the Dunlop Tyre Acquisition Scheme (D-TAC) was recently launched in Nigeria and Lagos, and provides a means by which customers can purchase Dunlop tyres at a discounted rate using the bank’s credit facilities, a means of purchase that has yet to gain wide acceptance in these countries. Under the terms of the financing deal arranged by D-TAC motorists will pay just a fraction of the cost of their new Dunlop tyres up front, bringing safe tyres within the reach of many who could otherwise not afford them.

23rd May 2007/by Tyrepress Editors

Cooper Names Ron Shield as Interim VP, Asian Operations

Cooper Tire & Rubber Co. has named Ron Shield as interim vice president and general manager for the company’s Asian Operations. A 20-year employee, Shield joined the company’s Avon Tyre organization as a tyre consultant with responsibility for establishing a Pakistan operation. Through the years Shield held various management positions including business development director, with responsibilities for logistics, supply chain, international business development, information technology and new product introduction. In 2001, he was named vice president, European Operations, and managing director for Cooper Tire Europe, with responsibility for the entire European operation.

“Ron Shield’s success in Europe, as well as his extensive international experience, make him well-qualified to manage and continue the success of our Asian footprint,” said Hal Miller, president, International Tire Division.

22nd May 2007/by Tyrepress Editors

Amtel-Vredestein Posts $110 million EBITDA

Amtel-Vredestein N.V. reports in un-audited results that it has exceeded the revenue projections made by the company in November 2006, by delivering sales of $823 million ($800 million estimated) and EBITDA of $110 million ($100 million estimated).

The Company cautions that certain non-cash adjustments to its 2006 results are still possible as it completes a protracted audit as a result of significant and complex transactions last year – including the acquisition of the Moscow Tyre Plant, the sale of its Amtel-Kuzbass chemical fibre plant in Kemerovo, Russia, and acquisitions of retail tyre centres throughout Russia.

Amtel-Vredestein has a positive outlook for 2007 and expects to achieve sales growth – primarily in its key passenger car tyre business. Sales are expected to fall between $1 – 1.1 billion in 2007 based on current sales trends and scheduled production output. Management also anticipates improvements in Gross Profit Margin consistent with previous years. EBITDA may exceed $120 million and rise to as high as $130 million. The Company expects to be profitable in 2007.

21st May 2007/by Tyrepress Editors

Microwave Ready Tyres

New Jersey based Global Resource Corp. (GRC) claims to have developed a patent pending process that allows for the low cost acquisition of alternative petroleum products from various resources. According to the company, the process uses specific frequencies of microwave radiation to extract oils and alternative petroleum products from secondary raw materials. As part of its broader resource acquisition technology program GRC has revealed, through filing with the US Securities and Exchange Commission, that it intends to build a US$70 million tyre-recycling plant at the site of a former steel works in the state of Pennsylvania.

The facility will take approximately a year to build once official clearance has been granted for work to commence, and when operational will employ around 250 people and be able to process approximately 16,000 kilograms of tyres per hour, according to GRC head engineer Hawk Hogan. The plant will employ the company’s microwave process in a vacuum environment, using what they call ‘molecular vibrations’ to ‘crack’ the hydrocarbon chain and breaking tyres down into their base material components.

18th May 2007/by Tyrepress Editors

ContiTech Releases Statement on Dunlop Oil & Marine Investigations

In the wake of allegations regarding price fixing practices in the marine hose manufacturing industry, Germany’s ContiTech AG has released the following statement:

The investigation into employees of Dunlop Oil & Marine Ltd. has taken the management of ContiTech AG by surprise. Dunlop Oil & Marine Ltd. was taken over by ContiTech AG with the acquisition of Phoenix AG at the end of 2004 and has since been integrated into the Fluid Technology business unit.

ContiTech AG does not yet have sufficient information regarding the matter. The employees therefore have to be presumed innocent. ContiTech will cooperate with the authorities in their investigation. Should it be determined that the allegations are true and that violations of law have indeed been committed, ContiTech AG will take the necessary actions.

18th May 2007/by Tyrepress Editors

European Commission Approves VB Autobatterie Acquisition

The European Commission has reported its approval of German company VB Autobatterie GmbH’s proposed acquisition of Italy’s FIAMM group’s automotive starter battery business, subject to the German company allaying competitor’s concerns about the impact such a deal may have.

These concerns are related to the FIAMM group’s business in Italy, Austria, the Czech Republic and Slovakia, as the company holds a strong market position there. A question mark hangs over the impact the planned transaction will have in these markets. VB Autobatterie has offered to divest some of its manufacturing capacity and some key FIAMM brands relevant to the replacement part markets in these countries.

The Commission’s initial market investigation in December stated that the proposed acquisition would raise ‘serious competition concerns’, but its latest position is that, subject to a number of conditions, the takeover would not have any significant hindering effect upon competition within European markets.

11th May 2007/by Tyrepress Editors

Sibur-Russian Tyres Willing to Enter Minority Partnership With Leading Manufacturer

Sibur-Russian Tyres director Igor Karavaev has spoken of the company’s willingness to enter into a joint venture partnership with a leading tyre manufacturer for the production of passenger car tyres in Russia. No particular names have been mentioned in relation to the possible deal, but it is the first time Sibur-Russian Tyres has suggested that it would be willing to work in partnership with another leading manufacturer as a minority shareholder. Karavaev, Sibur-Russian Tyres’s Russian strategy and business development director, didn’t mention any particular parties but suggested that Japanese, Korean or European manufacturers may be interested in such an opportunity. Speaking at Brityrex International in Manchester this week, Karavaev told Tyres & Accessories that Sibur-Russian Tyres would also be interested in developing similar partnerships for the production of aircraft and giant OTR tyres. For the full story see the June issue of Tyres & Accessories.

2nd May 2007/by Tyrepress Editors