Bridgestone part of $1 billion merger agreement – February 12, 2007
February 12, 2007
Filed under Features
Bridgestone Americas Holding Inc. and Bandag Inc., which manufactures retreading materials and equipment, have entered into a merger agreement that is valued at more than $1 billion, the two companies announced.
Bridgestone Americas will acquire the outstanding shares of each class of stock of Bandag, Inc. for $50.75 per share in cash. The transaction is valued at approximately $1.05 billion.
“Bandag is a leader in the retreading business, with a strong global reputation for quality, service and technology, as well as an extensive worldwide dealer network,” said Mark Emkes, chairman and CEO of Bridgestone Americas Holding, Inc. “The joining of Bridgestone Americas and Bandag will allow the two companies to better service their customers by offering a comprehensive tire maintenance solution, backed by a complete line of new and retread truck tire offerings.”
The transaction is expected to close late in the first quarter or early in the second quarter, subject to the receipt of shareholder and regulatory approvals, as well as the satisfaction of other closing conditions.
Based in Muscatine, Iowa, Bandag has a global network of more than 900 franchised dealers that produce and market retread tires and provide tire management services. In addition, Bandag owns and operates Tire Distribution Systems, a commercial retail operation that sells and services new and retread tires. In 2005, Bandag had worldwide sales of $921 million. Following completion of the transaction, Bandag will operate as a wholly owned subsidiary of Bridgestone Americas Holding Inc.
According to Carver, “The combination of Bridgestone Americas and Bandag will benefit our dealers and enhance their business futures. The transaction combines the strength of two well-run and respected companies, and will allow our dealers to go to market with an even more complete product offering.” psb