Michelin North America Inc. (MNA) has signed a definitive agreement to buy Oliver Rubber Co. from Cooper Tire & Rubber Co. for $69 million. Oliver will operate as a subsidiary of MNA. The deal is expected to go through by the end of the third quarter of 2007.
"The acquisition will be completed upon receipt by the parties of necessary regulatory approvals," say MNA officials.
MNA says the acquisition "will complement the manufacturing capability and service network of Oliver with that of the Michelin Retread Technologies (MRTI) network, enabling Michelin to extend its reach in the growing commercial retreading market."
In 2005, Michelin announced a major expansion of its tread manufacturing facility in Covington, Ga. and, earlier this month, the opening of a new manufacturing facility in Mexico.
"Oliver’s manufacturing capacity, product portfolio and experienced workforce are a terrific complement to Michelin’s current retread operation," says Luc Minguet, chief operating officer of Michelin Americas Truck Tire.
"We believe the two brands, managed according to Michelin’s strategic focus, will offer the North American trucking industry broader access to products and services to better meet their needs."
