TRELLEBORG, Sweden—Trelleborg A.B. has agreed to buy Maine Industrial Tire L.L.C., the Wakefield, Mass.-based solid tire maker, for an as-yet undisclosed price.
Trelleborg said it expects the deal, to be executed by its Trelleborg Wheels Systems S.p.A. unit, to be completed before year-end.
Maine Industrial Tire produces solid tires for a variety of vehicles—especially for forklifts—and generates annual sales of about $92 million with 650 employees. The company operates plants in Red Lion, Pa., and Xingtai, China.
Trelleborg said the bolt-on acquisition is part of its strategy to strengthen its positions in "attractive and profitable market segments" and broadens its industrial tires portfolio, which focuses on solid tires used in warehousing, logistic operations, airports and other applications.
"The acquisition strengthens our position as a global leader and a strong local business partner, not least in the world's two largest industrial tires markets—China and North America," said Maurizio Vischi, president of Trelleborg Wheel Systems. "The acquired company has a highly attractive portfolio of advanced products and favorable profitability performance."
In addition to solid tires for vehicles such as forklifts, Maine Tire also develops and produces solid specialty tires for areas such as construction, underground mining and waste management. Trelleborg said it expects the deal will generate undisclosed synergies.
Maine Tire's brands are Brawler, Maine Tire and MITL.
The acquisition in effect reunifies the companies' plants in China. In early 2011 Trelleborg acquired the pneumatic tire production assets of Maine Tire's Hebei Starbright Tire Co. Maine Tire retained control of the solid tire assets at that site.
Maine Industrial Tire was formed in January 2010 when a group of investors led by the Ganz family and existing senior management bought the solid tire assets and StarBright tire manufacturing facility in China from the restructuring and subsequent sale of GPX International Tire Corp. It can trace its history back to the formation of both Ganz Tire in 1922 and Maine Rubber in 1949.