If Bridgestone Americas Holding Inc.'s (BSAH) acquisition of Bandag Inc. goes through, it will give The Big Three -- Bridgestone, Michelin North America Inc. and Goodyear Tire & Rubber Co. -- a whopping 83.5% combined share of the United States truck tire retread market, according to Modern Tire Dealer research. Presently, Bandag alone enjoys 45% share of the U.S. retread market. Earlier today, Dec. 5, BSAH announced it intends to acquire the Muscatine, Iowa-based retread franchiser for $1.05 billion in cash.
The deal is expected to go through near the end of the first quarter or the start of the second quarter in 2007.
Behind Bandag, Goodyear enjoys the second largest share of the U.S. truck tire retread market at 26.5%. Michelin's share of the market totals 12%.
Cooper Tire & Rubber Co.'s Oliver Retreading Systems subsidiary enjoys 9% market share, while Marangoni Tread North America Inc.'s market share totals 1.5%. Miscellaneous systems make up the remaining 6%.
BSAH's acquisition of Bandag will give it more than 900 franchise locations throughout the world. The deal also includes Bandag's Tire Distribution Systems Inc. subsidiary, and majority ownership of truck quick lube chain Speedco Inc.
BSAH intends to acquire outstanding shares of each class of Bandag's stock for $50.75 per share.
