Bridgestone Americas Holding plans to buy retread giant Bandag, Inc., for $1.05 billion in cash – paying roughly $50.75 per share for Bandag’s stock.
Mark Emkes, Bridgestone America’ s chairman & CEO, said the deal should be a wrap by the end of the first quarter or early in the second quarter of 2007. He said Bandag will become a wholly owned subsidiary of Bridgestone.
Muscatine, IA-based Bandag, which posted revenues of $921 million in 2005, fields a global network of more than 900 franchised dealers that produce and market retread tires and supply tire-management services. Bandag also owns and operates Tire Distribution Systems (TDS), a commercial retail operation that sells and services new and retread tires, and has an 87.5% interest in Speedco, Inc., a national chain of quick-lube locations for trucks.
Bridgestone’s acquisition of Bandag “will allow us to better service their customers by offering a comprehensive tire maintenance solution, backed by a complete line of new and retread truck tire offerings,” said Emkes.
“Transportation companies actively seek tire management programs that start with premium new tires and take them through the retread process,” he added. “[This union] is aimed at providing customers with a total tire offering, a streamlined way to manage their needs throughout a tire’s life cycle.”