Bridgestone Americas completes acquisition of Bandag
It's official, although not surprising. Bridgestone Americas Holding Inc. (BSAH) is the proud owner of Bandag Inc. now that all the "t's" have been crossed and the "i's" dotted.
Bridgestone paid $1.05 billion in the "cash merger" for Bandag.
On Dec. 5, 2006, the two companies entered into a merger agreement in which BSAH committed to acquiring the outstanding shares of each class of Bandag stock for $50.75 per share (see "Power shift: Bridgestone-Bandag deal will sew up majority of retread market for The Big Three," Dec. 5, 2006). The closing occurred May 31, 2007.
"By combining our businesses, Bandag and Bridgestone Americas will provide even better service to our customers by offering a comprehensive tire maintenance solution, backed by a complete line of new and retread truck tire offerings," says Mark Emkes, chairman and CEO of BSAH.
Saul Solomon, previously vice president and general counsel of BSAH, is the chairman, CEO and president of Bridgestone Bandag LLC. Outgoing Bandag Chairman and CEO Martin Carver, whose family founded Bandag in 1957, will remain a key advisor to Solomon and his team.
Bandag's headquarters will remain in Muscatine, Iowa, according to Emkes.
Bridgestone Bandag, a wholly-owned subsidiary of BSAH, manufactures retreading materials and equipment for its worldwide network of more than 800 franchised dealers that produce and market retread tires and provide tire management services.
Bandag's traditional business serves end-users through a wide variety of products offered by dealers, ranging from tire retreading and repairing to tire management systems outsourcing for commercial truck fleets. Its Tire Distribution Systems Inc. subsidiary sells and services new and retread tires.
In addition, Bridgestone Bandag has an 87.5% interest in Speedco Inc., a provider of on-highway truck lubrication and routine tire services to commercial truck owner-operators and fleets.
BSAH is a subsidiary of Bridgestone Corp.