TOKYO—Bridgestone Corp. has offered to buy Otraco International Pty. Ltd., an Australian provider of Off-the-Road tire management solutions, in a move designed to accelerate the company's global growth in mining solutions business.
The transaction, valued at $61 million and subject to regulatory approvals and other customary closing conditions, is expected to close by year-end. The deal is being carried out by Bridgestone Mining Solutions Australia Pty. Ltd.
In business since 1972, Kewdale, Australia-based Otraco delivers tire-management solutions for OTR and light mobile equipment, helping customers throughout the mining sector to increase productivity and reduce the cost of tire ownership.
Among the assets Otraco offers:
- Complete tire management delivered by Otraco's fully accredited tire technicians located on-site; Otraco provides tire maintenance supported by Zero Harm safety programs and asset management solutions.
- Computerized tire management system recording real-time data from tire sensors that are used to track and manage tires and rims from manufacture to disposal, providing essential performance data reporting at key stages.
- Tire-pressure-monitoring systems delivered via software applications utilizing live data feeds to monitor tire life, issue alerts when maintenance is required and produce performance data reporting.
- Remote asset management systems enabling the tracking of tires and other heavy-vehicle assets from centrally located operational headquarters.
- Training and engineering support helping customers to commission, operate and maintain cost-effective tire-management solutions worldwide.
Otraco also operates offices in Santiago, Chile, and Pretoria, South Africa.
All business assets, including Otraco's sales offices and training facilities, OTR customer relationships and the company's approximately 860 employees will transfer to Bridgestone upon completion of the sale.
Otraco is part of Down Group, a publicly traded Australian company that designs, builds and sustains assets, infrastructure and facilities.