Bridgestone Americas to acquire Bandag for $1 billion
Bridgestone Americas Holding Inc. (BSAH) has entered into an agreement to acquire Bandag Inc. for $1.05 billion in cash. The transaction is expected to close late in the first quarter or early in the second quarter of 2007. Bandag, which enjoys 45% of the United States truck tire retread market, will operate as a wholly owned subsidiary of BSAH.
BSAH will acquire outstanding shares of each class of Bandag stock for $50.75 per share.
Certain shareholders, including Carver Partners LP and Bandag CEO and Chairman Marty Carver, "have entered into separate agreements pursuant to which they have agreed, subject to certain conditions, to vote their shares in support of the transaction," according to BSAH officials.
Bandag has more than 900 franchised dealers. In addition, it owns and operates Tire Distribution Systems Inc. (TDS), a commercial retail operation, and holds majority interest in Speedco Inc., a provider of on-highway truck lubrication services. Bandag posted worldwide sales of $921 million in 2005.
"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," says BSAH Chairman and CEO Mark Emkes.
BSAH and Bandag have had a long-standing relationship, note BSAH officials. "TDS stores have been authorized dealers of Bridgestone Americas' tires and many GCR Tire Centers -- units of Bridgestone Americas' subsidiary, BFS Retail & Commercial Operations LLC, which service the commercial and off-the-road trucking industry -- are Bandag dealers."