GREENVILLE, S.C. (July 31) — Michelin North America Inc. has signed a definitive agreement to buy retread materials supplier Oliver Rubber Co. from Cooper Tire & Rubber Co. in a deal that includes $69 million in cash.
The deal would make Oliver — which Cooper bought in 1999 — a subsidiary of Michelin that will complement its Michelin Retread Technologies manufacturing and service network. The Greenville-based tire maker said the addition of Oliver will enable it to "extend its reach in the growing commercial retreading market."
The sale is subject to various government approvals.
"Oliver´s manufacturing capacity, product portfolio and experienced work force are a terrific complement to Michelin´s current retread operation," said Luc Minguet, chief operating officer of Michelin Americas Truck Tire, in a joint statement. "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."
Oliver has 110 licensees in North America, compared with Michelin´s 41, according to data from Tire Business, a sister publication of Rubber & Plastics News.
Earlier this year Bridgestone Americas Holding Inc. finalized its $1.05 billion purchase of Bandag Inc., which had 187 licensees and 345 plants in North America.