GREENVILLE, S.C. — Michelin North America has expanded its retread offerings with the acquisition of Oliver Rubber Co., a subsidiary of Cooper Tire and Rubber Co.
We believe the products and services offered by Oliver Rubber and Michelin Retread Technologies are an excellent compliment to one another, Mark Burd, spokesman for Michelin told Trucknews.com this afternoon. This is a way for Michelin to broaden our product portfolio and strengthen our position in the marketplace.
The acquisition is subject to regulatory approvals and will likely be completed by the end of September, Burd said. At that point, Oliver will operate as a subsidiary of Michelin North America. The acquisition follows on the heels of a major expansion at Michelins tread manufacturing facility in Covington, Ga. and the opening of a new manufacturing facility in Mexico.
Olivers manufacturing capacity, product portfolio and experienced workforce are a terrific complement to Michelins current retread operation, said Luc Minguet, chief operating officer of Michelin Americas Truck Tire. We believe the two brands, managed according to Michelins strategic focus, will offer the North American trucking industry broader access to products and services to better meet their needs.
The purchase price is US$69 million.
Burd told Trucknews.com that the acquisition is another indication major tire suppliers are focusing on a total tire solution rather than simply providing products.
This is really the latest in a series of investments to broaden our retread offerings to the public and strengthen our position in the market, he said.
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