The European Commission has officially approved P.A.I Partner’s acquisition of Kwik-Fit, under the EU Merger Regulation.
The new owner of the fast-fit chain manages and advises dedicated private equity funds focused in different industry sectors, from food and food additives, water and waste management services to the production and sale of hydraulic clutch and brake systems and components.
Amtel has begun producing and selling Vredestein tyres in Russia following its acquisition of the Dutch company Vredestein Banden several months ago. The company plans to import around 30,000 tyres and produce another 15,000 under the brand at its Kirov plant this year.
It further expects to import 200,000 tyres in 2006 and to produce approximately 1 million at its Kirov location. The company makes 150 per cent more profit on tyres sold under the Dutch trademark than on its own brand.
Amtel owns the Voronezh, Kirov and Krasnoyarsk and Belaya Tserkov tyre plants, Khimvolokno of Kemerovo and the Volgograd Technical Hydrocarbon Plant all in its domestic market. It produced 14.39 million tyres in 2004 whilst Vredestein’s Dutch plant produces about 5 million tyres per year. It also has sites in India and Indonesia that produce tyres for agricultural use and an independent enterprise in Malaysia that makes bicycle tyres.
Tiger Wheels has reinforced its position in the North American market with the acquisition of a large-diameter wheel plant in Kentucky. The company reports that the plant is dedicated to supplying Ford motor manufacturing plants in Detroit, Louisville and elsewhere and cost $24 million.
The acquisition, which was made by Tiger’s 74 per cent owned German-based wheel manufacturing business, ATS Beteiligungs GmbH, looks a good purchase when the assets’ book value ($45 million) is taken into account. ATS Beteiligungs bought the facility from the Australian ION Group, which is currently in administration.
Bridgestone has completed the acquisition of Goodyear’s stake in the Indonesian based Sumatra Plantation for $62 million.
Goodyear said the decision to sell its 95 per cent stake is consistent with its strategy to focus on core business activities. This transaction is not expected to “significantly impact” the company’s ability to acquire natural rubber for its operations, says the manufacturer.
Rubber compound manufacturer and tyre retreader Goodway Integrated Industries Bhd expects revenue to grow by 40 per cent, or about 10 million euros, in two years, upon acquiring a 100 per cent equity interest in Sabah-based retreading company, Big Wheel Holdings Sdn Bhd for 5.3 million euros, according to Business Times (Malaysia). With Big Wheel’s acquisition, Goodway will start producing between 4,200 and 4,500 pieces of solid tyres next year.
Indian news sources are reporting that the race for Falcon Tyres is hotting up, with the Hero Group and Metro Tyres entering the fray to acquire the two-wheeler tyre maker. Sources say Apollo Tyres and JK Tyres, who were earlier in the race, have dropped out because of various reasons. The Bangalore-based Falcon Tyres is part of late Manu Chhabria’s Jumbo group. The company markets its tyre under the Dunlop brand.
If successful, Falcon’s acquisition will give the Hero Group an entry into the tyre business, while Metro will leapfrog to number two position in the Indian ‘two-wheeler tyre market,’ from a distant fifth at the moment. Asked to comment, Sunil Kant Munjal, CEO and managing director, Hero Corporate Services, refused to confirm or deny the move. “I just don’t want to discuss whether we are interested in Falcon or not,” said Mr Munjal.
Amerityre Corporation. Richard Steinke, president and CEO of Amerityre Corporation, today announced that Amerityre has entered into a non-binding memorandum of understanding with Ace Products, LLC, for a proposed transaction involving the licensing of certain technology and the sale of certain manufacturing equipment and inventory.
Varta is set to strengthen its already dominant position of OE car battery supplier in Europe through the acquisition of the European battery business of Delphi Corporation. The acquisition came into effect 1 July, following approval by the European Commission under antitrust laws.
Credential Environmental Limited (CEL), the tyre, automotive and special waste collector and reprocessor, has acquired Betta Special waste and Betta Environmental Solutions. The deal, details of which were not revealed, effectively doubles the size of CEL’s hazardous waste division.
Amtel has secured a sum of private equity capital totaling US $70 million (£40 million). Following its recent acquisition of Vredestein the company has arranged equity financing from two leading groups, Alfa Group and Temasek Holdings, representing both domestic and international investors.
The European Commission has approved Goldman Sachs’ acquisition of Pirelli’s engery and telecomms cable businesses. The commission found that no company controlled by Goldman Sachs is engaged in the EU in the same markets as those in which the acquired businesses are active, and therefore will not impede competition. In addition the commission observed that the acquired businesses face strong competition from companies such as Corning and DrakaComteq.
CVC Capital Partners has sold Kwik-Fit to French private equity firm PAI for £800 million. The news follows months of speculation including suggestions that a Bridgestone/Mitsubishi joint venture was pulling out in front when it came to bidding for the UK’s largest fast-fit chain. Bloomberg reports that PAI plans to open more fast fit retail outlets as a result of the acquisition.
Alcoa is planning to develop a range of forged aluminium passenger car rims, which will be produced alongside the company’s forged truck products. The wheels will be produced at Alcoa’s Samara, Russia, plant and will also be made available for sale in the European market. At the same time the company is set to embark on a restructuring programme designed to improve efficiency, shedding five per cent of its total international workforce. This means up to 800 jobs in the company’s wheel business could be lost. The wheel restructuring programme is expected to cost the company between $65 and $70 million – roughly half of this will be down to severance costs.
Alcoa acquired the casted wheel business as part of the large purchase of competitor Reynolds in 1999. This acquisition saw the company take over factories in Italy (Ferrara), Venezuela and North America. However, Alcoa never really seemed happy with its casted aluminium passenger car rim strategy.
Goodyear UK’s MD Dick Johnston recently paid a visit to Ireland’s Modern Tyre Service to congratulate directors and staff on their 40th anniversary.
Having started in 1965 the company now operates through two headquarters based in Newry and Enniskillen. Following extensive investment, and the acquisition of several new depots, Modern Tyre now has a total of 26 branches making it the largest independent tyre retailer in Northern Ireland. The company services the private, fleet and wholesale markets with all major brands of tyres as well as batteries, exhausts and alloy wheels.
Galaxy Tire & Wheel and Dynamic Tire Corp have agreed to merge. As a result a new company, GPX Tyre & Wheel, will be formed. According to an official statement the new company is expected to record sales of more than $300 million in 2005 and holds assets in excess of $100 million. “The will provide the solid foundation and critical mass necessary for GPX Tire & Wheel to become one of the leading global players in the agricultural, industrial, commercial and off-the-road tyre markets,” the statement says. For the time being the two companies will operate in parallel as separate entities. The merger is expected to be completed by the end of this calender year.
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