Bandag Inc. paid approximately $56 million for a majority interest in Speedco Inc. from its three founders and Shell Oil Products US.
As part of the agreement, Bandag also has agreed to retire $20.1 million of the company's debt.
Speedco, based in Cayuga, Ind., provides quick-service truck lubrication nationwide through 26 company-owned and six licensed on-highway locations. It generated unaudited revenues of close to $46 million and pretax income of approximately $4.8 million in 2003, according to Bandag.
Bandag says it will operate Speedco as an independent business unit. Speedco's three founding partners, who retain the remaining 12.5% minority stake in the business, will run the company in the following roles:
* Mark Clark will remain CEO and president.
* Jeff Clark has been named vice president, finance and administration -- treasurer.
* Jim Dudley will serve as vice president of planning and development.
"Solidly profitable, Speedco has set the standard for consistently high quality, quick-service lubrication service in the commercial trucking industry," says Bandag Chairman and CEO Marty Carver. "Speedco's proven track record and strong management team move Bandag measurably closer to becoming a leading provider of vehicle services that make North America's fleets more efficient."
Lubrication and tires are the trucking industry's two most frequent preventive maintenance needs, says Carver. "Speedco's service reputation and nationwide on-highway presence create a solid platform for the expanded delivery of en-route maintenance services both now and in the years to come."
Although Shell no longer has any financial stake in Speedco, Clark says the chain will continue to feature Shell lubricants in their services.
