BRIDGESTONE Corporation, the world's largest tire manufacturer, has completed its $1.05 billion merger with retreading giant Bandag. The merger combines Muscatine, Iowa-based Bandag with Bridgestone's US subsidiary Bridgestone Americas Holding (BSAH), headquartered in Nashville, Tennessee.
Bandag is the operating name of the new company, Bridgestone Bandag, a wholly owned subsidiary of BSAH.
“Our goal is to build on the strengths of both companies to become the undisputed leader in the new and retread truck tire business,” said Saul Solomon, new chairman, chief executive officer, and president of Bandag.
Mark A Emkes, chairman and CEO of BSAH, said “By combining the two businesses, customers will be able to take advantage of a streamlined way to manage their entire tire lifecycles with a total tire solution backed by a complete line of new and retread truck tire offerings.”
Bandag and Bridgestone will exchange resources, research and development, technologies, and capabilities to develop enhanced products and services, as well as new offerings. Both brand names will remain. Bandag's headquarters will stay in Muscatine.
For the time being, there will be no significant changes in Bandag's business relationship with Speedco, a nationwide chain of quick truck lubrication and tire service centers, in which it owns a majority interest.
Outgoing Bandag chairman and CEO Martin G Carver, whose family founded Bandag in 1957, will stay on as a key advisor to Solomon and his team.
Bridgestone and Bandag entered into a merger agreement in late December 2006. The deal was done May 31, 2007.
Bandag manufactures retreading materials and equipment for its worldwide network of more than 800 franchised dealers that produce and market retread tires and provide tire management services. Its Tire Distribution Systems (TDS) subsidiary is a commercial retail operation that sells and services new and retread tires.
BSAH and its subsidiaries develop, manufacture, and market a wide range of Bridgestone, Firestone, Dayton, and associate brand tires to address the needs of a broad range of customers, and operate the world's largest chain of automotive tire and service centers. The companies also produce air springs, roofing materials, synthetic rubber, industrial fibers, and textiles.