More on the Galaxy-Dynamic Tire merger
Following yesterday's announcement that Galaxy Tire & Wheel Inc. and Dynamic Tire Corp. had reached an agreement to merge, the companies released an official statement. Here it is in its entirety.
"Galaxy Tire & Wheel, Inc. of Boston, Mass., and Dynamic Tire Corp. of Toronto, Canada, have reached an agreement in principle to merge the two companies.
"The resulting company, GPX Tire & Wheel, will have 2005 sales of more than $300 million and assets in excess of $100 million. This will provide the solid foundation and critical mass necessary for GPX Tire & Wheel to become one of the leading global players in the agricultural, industrial, commercial and
off-the-road tire markets.
"Galaxy and Dynamic are extremely complementary companies and the merger of these two entities will result in tremendous synergistic opportunities. Galaxy brings to the partnership strong engineering capabilities, a well regarded brand name and long-established original
equipment contacts. Additionally, its operations in Europe, including its factory in Serbia, provide a spring board for much greater penetration of the European markets.
"Dynamic Tire, voted one of the 50 best managed companies in Canada for the last two years, brings to the partnership industry-leading sourcing and logistics expertise. These capabilities allowed Dynamic to become one of the world's most cost-effective suppliers of high quality industrial, commercial and OTR tires.
"It is this combination of quality and price that has allowed Dynamic to grow at an annualized rate of 50% since its inception in 1997.
"By combining Dynamic's sourcing capabilities, advantageous cost structure and successful Primex brand with Galaxy's engineering capabilities and well-regarded brand name, GPX is well
positioned to offer its customers a broad range of high quality, purpose-built tires at extremely competitive prices. As a result, GPX sees tremendous growth opportunities at both the original equipment and after-market level.
"Due to the high demand for both Galaxy and Dynamic products, GPX will seek out acquisition opportunities in both China and Europe in order to augment its existing production capabilities. This will ensure a stable source of supply for both GPX's original equipment customers and aftermarket dealers.
"Galaxy and Dynamic intend to maintain the existing brand names of both companies. Galaxy and Constellation tires will continue to be available only through Galaxy dealers, and Primex tires will
continue to be available only through Primex dealers.
"The merger, however, will allow Galaxy to add medium radial truck, special trailer and ATV tires to the Galaxy product range, and it will
allow Dynamic to add certain specialty tires produced by Galaxy to the Primex product range. This will give both Galaxy and Primex dealers a broader range of products with which to go to market.
"It is anticipated that the merger will be completed by the end of this calendar year."
For additional information, see the June 8 item, "Galaxy, Dynamic Tire merge," on www.moderntiredealer.com.