Michelin North America today, July 31, announced that it has signed a definitive agreement to acquire Oliver Rubber Co., a subsidiary of Findlay, Ohio-based Cooper Tire & Rubber Co. that produces tread rubber and retreading equipment. The acquisition will be completed upon receipt by the parties of necessary regulatory approvals; following the acquisition, Oliver will operate as a subsidiary of Michelin North America.
The companies say the acquisition will complement the manufacturing capability and service network of Oliver with that of the Michelin Retread Technologies network, enabling Michelin to extend its reach in the growing commercial retreading market. In 2005, Michelin announced a major expansion of its tread manufacturing facility in Covington, Ga., and, earlier this month, the opening of a new manufacturing facility in Mexico.
The terms of the transaction include a cash purchase price of $69 million. The transaction is subject to final due diligence, as well as Federal Trade Commission and U.S. Department of Justice approval.
“Oliver’s manufacturing capacity, product portfolio and experienced work force are a terrific complement to Michelin’s current retread operation,” says Luc Minguet, chief operating officer of Greenville, S.C.-based Michelin Americas Truck Tire. “We believe the two brands, managed according to Michelin’s strategic focus, will offer the North American trucking industry broader access to products and services to better meet their needs.”