Russian tire manufacturer plans to acquire Vredestein
Amtel Holding Co., one of Russia’s largest tire manufacturers with four tire plants, says it will acquire Vredestein Banden.
Integrating the Dutch-based tire manufacturer´s operations will make Amtel a $1 billion company. Amtel says it anticipates the transaction will close by February 2005. The completion of the transaction is subject to advice by the works council of Vredestein Banden in the Netherlands.
The transaction will involve the purchase by Amtel Holdings Holland N.V., the parent company of Amtel, of Vredestein Investment Consortium (VICO) N.V.’s interest in Vredestein Banden. Amtel will take over all of Vredestein´s operating subsidiaries "engaged in the production, distribution and sales of tires and off-take arrangements, as well as Vredestein Banden’s trademarks, patents and other intellectual property," according to the company.
"This acquisition will create a company with an estimated EBITDA of $150 million in 2006, and a market value of $1 billion," says Sudhir Gupta, Amtel´s president. "We believe that this acquisition will contribute significantly to the success of our IPO, which we are targeting for the end of 2005."
Vredestein Banden reported tire sales of more than 200 million euro in 2003. The company, which sells about 40% of its production in Germany, has sales operations in both Europe and North America.
The acquisition gives Amtel access to European and North American distribution networks, says Gupta.
"Vredestein Banden will become fully integrated with Amtel and continue to focus on manufacturing high and ultra-high performance tires, as well as high-tech radial agricultural tires."