UK based company Watts Tyres Plc has announced the purchase of Diprima Industrial Tire after reaching an agreement with Diprima Marketing Services Inc. This latest acquisition, combined with Watts’ existing US facility in Valley City, Ohio, gives the firm a strategic position in both the northern and southern US states, putting it in a better position to achieve its ambitious growth plans.
Bridgestone Americas Holding Inc.’s US$1 billion acquisition of Bandag Inc. has received early approval from the US Federal Trade Commission (FTC). The FTC ended a required 30-day waiting period for the acquisition ahead of schedule, on January 29, announced Bandag in a prepared statement. The 30-day period was not scheduled to end until February 8.
A number of Bandag Inc. shareholders have reportedly filed a lawsuit against the retreading supplier for allegedly failing to seek offers of purchase from potential buyers other than Japanese tyre giant Bridgestone. The lawsuit was filed in the District Court in Bandag’s hometown of Muscatine County, Iowa on December 8 by the Plumbers and Pipefitters Local 572. They are seeking class action status on behalf of all shareholders.
Germany’s Federal Cartel Office and corporate competitiveness watchdog, the BundesKartellamt, has given the all clear for Continental’s purchase of UK based company Thermopol International Limited. The German automotive supplier intends to integrate Thermopol into the Fluid Technology business unit of its daughter company, ContiTech.
Pricing of GITI Tire’s $200 million secured note concluded a day late on 19 January in Hong Kong. The bond will list in Singapore. Apart from helping its parent, the proceeds are expected to be used for capital expenditure, general corporate purposes and possible acquisition of other tyre businesses.
French insurance giant Axa has cut its voting stake in Continental, the German maker of tyres and auto parts, to less than 10 per cent, according to the automotive. As of 4 January, Axa’s voting stake in Continental stood at 9.52 per cent, the auto parts specialist said in a mandatory legal filing published in the German press. Previously, Axa had held a share of 10.05 per cent in Continental’s voting capital.
UK based manufacturer of automotive and aerospace components, GKN, is taking its expansion within the Chinese market one step further following the acquisition of one of the country’s leading manufacturers of off-highway wheels. GKN has also announced details of a new investment and joint venture.
Amtel-Vredestein N.V., Europe’s fourth largest producer of tyres, has announced it has sold its Amtel-Kuzbass chemical fibre plant in Kemerovo. The company had disclosed its intention to sell the loss producing Russian plant, its last remaining non-core asset, during 2006.
While the implications of this sale are still being analysed, it is thought that it will contribute a loss to company’s 2006 full year results, which Amtel-Vredestein believe will be offset by their acquisition of the Moscow Tyre Plant.
Carlisle Companies Incorporated, parent company of Carlisle Tire & Wheel, have on December 18 announced details of their agreed purchase of a tyre group in China. This latest acquisition adds to the US company’s already sizable manufacturing base in that country, a presence the company has had for more than a decade.
Carlisle will acquire the assets of Meiyan Tire Group, based in Meizhou, Guangdong Province, and the deal is expected to be finalised by March 31.
The distribution and retail subsidiary of Amtel-Vredestein, AV-TO, has announced the opening of its new showpiece, a tyre and automotive service centre in Moscow. The openings signals the final step in the company’s 14 month re-branding of its retail network.
Replacement demand is currently the most important driver in the European mechanical testing and material handling equipment market. Products from established manufacturers are increasingly being replaced by novel offerings from new participants, driving competition and volume sales, according to Frost & Sullivan.
The research firm said the European mechanical testing and material handling equipment market earned revenues of 566.8 million euros in 2005 and estimates this will reach 725.73 million in 2012. “As customers attempt to constantly update and equip themselves with the latest technologies, they are no longer willing to limit themselves to traditional manufacturers,” said F&S senior research analyst Benny Daniel. “End consumers are signing contracts with manufacturers with these competencies, generating fresh demand for garage equipment as a result.”
UK and international Novex dealers were recently given first-hand insight into the production of and technical knowledge behind the tyres they sell. In a visit to the Dunlop Tyres International facility in Durban, South Africa, a selected group of retailers were taken through the stages of manufacture that go into each Novex car and light commercial tyre.
(Akron/Tire Review) Bridgestone Corp. said yesterday that it will use a bank loan to facilitate Bridgestone Americas Holding’s acquisition of Bandag Inc., announced earlier this week. BAH is buying the retreading giant for $1.05 billion in cash, with Bandag becoming an operating subsidiary of BAH. The deal is expected to close by mid-2007.
Europe’s fourth largest tyre producer, Amtel-Vredestein N.V. announced that its subsidiary, OJSC Amtel-Vredestein, along with CJSC Moscow Tyre Plant-M have secured three lines of credit totalling almost £39 million with the Russian Federation’s Sberbank in order to finance costs associated with its acquisition of the Moscow Tyre Plant. These costs include the restructuring and refinancing of the factory’s debts.
Bridgestone shares rose three and a half per cent to 2,550 yen, the greatest gain in two months, after the tyremaker agreed to purchase retreaders Bandag Inc.
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