NASHVILLE, Tenn. — Bridgestone Americas Holding has made a deal to purchase Bandag, a leading manufacturer of tire retreading materials and equipment, to the tune of US$1.05 billion in cash.
Bandag shares were trading at about $45 per share Tuesday, before Bridgestones offer of $50.75 per share. Bandags board of directors has unanimously approved the agreement. The transaction is expected to close late in the first quarter or early in the second quarter of 2007.
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 A. Emkes, chairman and CEO of Bridgestone Americas Holding. 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.
Muscatine, Iowa-based 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, and holds an 87.5% interest in Speedco, a provider of on-highway truck lubrication and routine tire services to commercial truck owner-operators and fleets. In 2005 Bandag had worldwide sales of US$921 million.
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