ROVERETO, Italy—Marangoni S.p.A. has sold its solid tire manufacturing and distribution assets to Onyx Group, a Dubai, United Arab Emirates-based diversified entity with holdings in transportation, engineering and trading.
Financial terms on the agreement were not disclosed.
The deal—an extension of a cooperation agreement the two companies signed in January—includes a provision for Maranangoni to provide Onyx with tires made at its Rovereto plant as well as rights to the Marangoni brand name related to solid tires along with the Jumbo, Forza, Eltor and Quickmont trademarks.
Under the deal's terms, Onyx has bought Marangoni Industrie Manutention, a trading company based in France; Wenzel Industrie G.m.b.H., a trading company based in Germany; Marangoni Industrial Tyres S.r.l., a commercial company based in Italy; and Marangoni Industrial Tire Lanka, a company based in Sri Lanka.
The companies' earlier agreement covered Marangoni's commitment to provide Onyx with technology and machinery for passenger tire production for a tire plant Onyx was planning to set up a plant in Sri Lanka.
That project, identified as Rigid Tyre Corp. (Pvt.) Ltd., reportedly is on hold pending an investigation into a dispute over the land rented for the project to Onyx Group via Ceylon Steel Corp., an affiliated enterprise.
The venture's investor is Nandana Lokuwithana, chairman of Ceylon Steel Corp. as well as chairman of Onyx Group.
The companies' earlier agreement included Onyx's purchasing a 49 percent stake in Marangoni lndustrial Tyres Lanka (Pvt.) Ltd., a Sri Lankan solid tire producer.
Marangoni said its solid tire business generates annual sales of more than $33 million and produces about 7,000 metric tons of tires at the plants in Italy and in Sri Lanka.