Mitas parent company to buy Continental's ag tire unit
Ceska Gumarenska Spolecnost (CGS), which owns Cezch Republic-based Mitas a.s., will acquire Continental AG's farm tire division.
CGS will be responsible "for production and trade" of the German tiremaker's Continental, Semperit, Barum and Ezkadi brands, according to Dennis Vavrik, president of Mitas subsidiary Mitas U.S. Inc.
The deal will be consummated "probably within the next few months," says Vavrik.
The acquisition is part of CGS' plan to intensify its focus on the off-road tire segment, according to CGS officials.
CGS will integrate Continental's ag tire division -- which has some 500 employees in Germany, the Czech Republic and other countries -- as a separate unit.
CGS and Continental also have agreed "to enlarge their intensive cooperation in many fields by a number of service agreements, which will enable continuity in the providing of certain services from Continental."