BOSTON (March 28) — GPX International Tire Corp. has signed a definitive agreement to buy solid industrial tire maker Maine Industrial Tire Ltd. of Gorham, Maine.
Financial terms of the deal, which is expected to close within the week, were not disclosed. The deal will give GPX more than 1,000 employees with facilities in North America, Europe and Asia.
MITL, formed in 1999 when Maine Rubber International bought Industrial Tires Ltd. and Precision Products Ltd., designs and manufactures solid industrial tires sold under the MaineTire and ITL brands. The firm also produces and markets a line of solid tires for use on skid steers and loaders under the Brawler brand.
The 1999 acquisition gave the company a presence in the forklift aftermarket and original equipment market.
"The MITL acquisition makes a lot of sense for both companies as our product lines are largely complimentary," said Robert Sherkin, chairman of GPX. "MITL is one of the world leaders in solid resilient and press-on tires whereas GPX is a leader in off-road pneumatic tires."
Terry Lindberg, president of MITL, will retire when the sale closes, according to GPX, and Ken Hebert, now chief financial officer, will become president.
GPX was formed last year by the merger of Canada´s Dynamic Tire Corp. and Massachusetts-based Galaxy Tire & Wheel Inc. After that deal, private equity firm Sterling Investment Partners purchased a $41 million equity interest in GPX to give the firm the financial strength to pursue acquisitions.