Trelleborg has an annual growth target of 15-20 percent. Part of this is attained through an ongoing acquisition policy. This has given rise to speculation on a possible Continental take-over. Trelleborg has felt obliged to confirm that there are currently no negotiations between the companies.
Aftermarket wholesaler SDL, which went into Receivership when parent company Finelist collapsed recently, has been purchased by Belgian exhaust manufacturer, Bosal Group. SDL was one of the biggest customers of Bosal UK and the acquisition ensures continuity of supply of Bosal exhausts, catalytic converters and other accessories to the UK aftermarket. No details about the terms of the deal was revealed.
Nokian Tyres has purchased the 13-outlet tyre chain of Dackaffaren for the sum of 4.3 million Euro. Dackaffaren had a turnover of 110 million Swedish Crowns (11.5 million Euro) last year and employs 70 staff. The company will be incorporated into Nokian’s Vianor tyre retail chain, which now consists of 50 outlets in Sweden and a total of 170 outlets in five countries. Kim Gran, Nokian’s President and CEO, says that the acquisition completes the company’s coverage in Sweden.
Following Michelin’s acquisition of several retreaders in the USA last year forced Bandag, the largest competitor in that market, to take over some erstwhile franchises, we are now hearing of successes for Goodyear’s retreading system, Treadco. The retreading business of Oliver (Oliver is part of the Cooper-Group) seems to be suffering significantly under the growing pressure.
Watts Industrial Tyres has strengthened its European operations by the acquisition of Kollenbach, of Rheinberg, Germany. Said Jean-Paul Mindermann, MD of Watts-Industrie Reifen: “We had outgrown our own premises in Langenfeld and the Kollenbach acquisition has enabled us to double our operation in the Ruhr area.”
Last year there were rumours concerning a possible hostile takeover bid for Continental by ThyssenKrupp. However, ThyssenKrupp was not able to bring its steel subsidiary company to the stock exchange as planned and it seemed that the acquisition pressure had been halted. On January 15th, the ThyssenKrupp management mentioned during a press conference that they are planning “a bigger acquisition in the automotive field”. No further details were made available.
Delphi Automotive Systems has bought Federal Mogul’s Advanced Disc System brake technology. ADS features a simplified design offering better performance through an assembly using fewer components which ultimately may speed brake by wire technology and remove the need for booster equipment in brake assemblies. ADS can reduce the mass of the brake assembly by up to 25%.
Continental Teves (Frankfort) – part of Continental AG (Hanover) – responsible for brake business, at the end of March, acquired two Japanese companies engaged in this field. The companies are Shin-Ei and ShinTec, former subsidiaries of the Mazda Motor Corporation. Continental’s Board Member, Dr. Wolfgang Ziebart, responsible for Continental Teves, said that this acquisition is another important step toward the goal of becoming a system supplier for mechanical and electronic brake systems in the markets of Japan and Korea.
TYRES & ACCESSORIES, on hearing stories of a Continental sale of National Tyres and Autocare decided to put the question to National. In response to enquiries about the possible sale by Continental, Roger Hawkins, Managing Director of National’s Retail division told TYRES & ACCESSORIES, “Continental has no immediate plans to sell National Tyres, rather it has invested a considerable amount into the fast-fit chain in the past 18 months on branch refurbishment and acquisition of “High Street” locations and will soon be unveiling an ambitious new fleet programme.” National Tyres and Autocare is a wholly owned subsidiary of Continental AG and reports to Continental AG in Germany. If the Equity were to be sold off it would send shock-waves through the UK retail and wholesale trade.
Nomura International, which holds a “substantial” equity stake in Romanian tyre manufacturer Tofan, has announced the sale of parts of the company to Michelin. The French company has bought the Victoria car tyre plant, the Silvania truck tyre factory, a retreading unit, a number of warehouses and the Tofan-owned distribution network. The purchase price was not revealed but a number of tyre manufacturers are said to have been interested. Tofan will continue to manufacture agricultural and implement (brand name: Danubiana) tyres and this business will be expanded, says Nomura, which remains a significant shareholder.
Under the terms of the agreement Reedijk Banden Import will operate autonomously and current managing director, Marcus Reedijk will retain responsibility for the day to day running of the company. The Van den Ban group expects to realise a much stronger market position for its wholesale tyre activities. As a result of the acquisition the turnover of Van den Ban Autobanden B.V. is expected to rise to Euro 160 million.
The sharp drop in prices of Goodyear shares over the past three months has put extreme pressure on Goodyear’s top management. Possible reasons for the drop include increased raw material costs and apprehension among shareholders that the Dunlop acquisition could have a negative impact on results in the year 2000.
After good a result for 1999, Vredestein NV has reported losses for the first half year in spite of satisfying results in the tyre business sector. The main reason for the bad figures was given as the consequences of an acquisition by subsidiary company Hevea, a producer of boots.
Edouard Michelin has confirmed that Michelin will go ahead with plans to reduce its European workforce by 10%, referring to the initiative as “not just a cost-cutting plan or headcount reduction. It is a productivity plan that has an upside of speeding up growth. In the same interview, Edouard Michelin said that tyre industry consolidation was not at an end. Michelin, he said, will eventually have to make “some kind of link, alliance, or even acquisition” in Asia. He also suggested that medium-sized tyre companies will “either merge or join the club of the large companies”.
The German supplier of various items of equipment for the tyre shop, MAHA (Maschinenbau Haldenwang), has acquired lifting platform specialist Slift. With this acquisition, MAHA staff numbers increase to 1,000.
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