(Akron/Tire Review) No sooner had the ink dried on the merger of Galaxy Tire & Wheel and Dynamic Tire Corp than the combined company – GPX International Tire Corp. – has sold a share of the company to private equity firm Sterling Investment Partners for a reported $41 million.
(Akron/Tire Review) Sumitomo Corp. of America (SCOA) announced today that its purchase of TBC Corp, for approximately $1.1 billion, has been closed. TBC will operate as a subsidiary of SCOA and continue to be led by TBC’s current senior management team, the company said. “We are excited to add TBC to our growing family of companies,” said Susumu Kato SCOA president and CEO. “TBC complements our existing portfolio, and we look forward to working with them on the successful implementation of their long-term business strategy.”
The shareholders of US wholesaler, TBC Corp, have approved the company’s purchase by Sumitomo Corp of America. Sumitomo America, a subsidiary of Japan’s Sumitomo Corp will pay $35 in cash per TBC share. Including debt, the total acquisition value is about $1.1 billion. The transaction is expected to close later this week, the company said in a statement
Driven by operating losses in all of its tyre units, Cooper Tire & Rubber Co finished the third quarter with a net loss of $1 million and sales that nudged just 1 per cent over last year’s results. Analysts described the company’s third quarter as “challenging” and warned that there are “more headwinds to come.”
For the quarter, Cooper posted sales of $558 million, up 1 per cent against the same period in 2004. The net loss, said Cooper, came as a result of lower unit sales, higher raw material costs, and “higher reported interest expense.”
(Akron/Tire Review) Continental AG is considering the purchase of Goodyear Tire & Rubber Co’s engineered products business. Conti CFO and Continental Tire North America President Alan Hippe told German media last week that such an acquisition would be a good fit. “We will look at that. That is for sure,” Hippe said. “But I have to state here that our major priority is to grow in automotive systems.
Performance Fibers today announced that its Asian subsidiary has signed an agreement that will give it full ownership of the company’s operations in Kaiping, China. The subsidiary, Performance Fibers Asia, LLC (PFA), has signed an agreement with Guangdong Kaiping Chunhui Co Ltd (Chunhui) to acquire Chunhui’s 30 per cent equity share in Performance Fibers Kaiping Company Limited (PFK).
(Akron/Tire Review) Cooper Tire & Rubber Co. today announced that it has reached an agreement to acquire 51 per cent ownership in Shandong Chengshan Tire Company Ltd. (Chengshan) of Shandong, China, and will partner with that company to create Cooper Chengshan (Shandong) Passenger Tire Co. Ltd. and Cooper Chengshan (Shandong) Truck Tire Company Ltd. Cooper said the total investment in the acquisition would be approximately $70 million.
(Akron/Tire Review) Activist hedge fund Jana Partners has taken a strong stance against the proposed “merger” between Titan International and One Equity Partners. Calling it a move to take Titan private, Jana Partners said the $18 per share offer made by One Equity Partners was “well below the true value of the company.”
Deutsche Bank analysts have published a “buy” rating for shares in Sumitomo Rubber Industries. The bank says it sees potential for the company’s share price to grow in the region of 20 per cent. “SRI’s earnings are much better than expected and the acquisition of TBC Tyres in North America through Sumitomo Corporation brings additional positive aspects,” Deutsche Bank representatives reported.
At the same time the bank’s analysts lowered their expectations for Cooper shares and issued a “hold” rating for the company’s stock. Analysts from Deutsche Bank lowered their expectations to $13.50. “Due to weaker demand the company is obviously not meeting the turnover target this year,” the analysts commented.
Michelin has bought Apollo Tyres’ stake in the two companies’ joint venture. In addition to the 49 per cent stake Michelin now owns as a result of the acquisition, the French manufacturer will hold onto the 14.9 per cent stake it acquired in Apollo Tyres two years ago. Explaining the reason behind the buy-out, Michelin said: “While the use of radial tyres has gone up in the past two years, it is at a pace that was slower than projected by the partners.”
Nokian Tyres has purchased US companies University Wholesalers Inc and University Wholesalers in order to strengthen its wholesale and logistics in the strategically important North American winter tyre markets. The purchase agreement was signed 28 of September 2005.
Sumitomo Corp, the third-largest trading house in Japan, said it has reached an agreement to acquire US automobile tyre retailer TBC Corp this year for some 120 billion yen (£600 million). Sumitomo said it will complete the acquisition at the end of December. The acquisition is intended to solidify Sumitomo’s existing tyre business and increase profits by expanding into tyre retailing, the company said in a statement. The Japanese company plans to expand its tyre business in the U.S. by adding TBC’s more than 1,000 retail stores to its Treadways Corp. wholesaling business.
When it comes to online tyre sales, Delticom claims the position of European market leader, with 47 business to consumer (B2C) online shops in 21 countries. Alongside its core tyre business, Delticom is expanding its range of car products to include spare parts, roof racks, garages, motor oil and batteries for both private and business customers.
Delticom’s recent financial results reflect the company’s confidence. In the first-half of 2005 Delticom increased turnover to 56 million euros, compared wit 34 million euros in the same period the previous year. This 65 per cent increase means the company expects its full-year sales to total some 110 million euros.
Alcoa has announced that it has offered to purchase the remaining 18 per cent of the Belaya Kalitva (BKMPO) fabricated aluminium plant in Russia still held by shareholders following its acquisition from Rusal in January 2005.
Metro Tyres has suggested that it might consider going public in order to fund a possible acquisition of Falcon Tyres. The news follows the company’s recent admission that it was interested in purchasing Falcon Tyres.
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