CHICAGO-An investment group has purchased the assets of Lakin General Corp., a wholly owned retreading subsidiary of A. Lakin & Sons operating out of Chicago. The unnamed limited partnership, containing about 30 investors including Concord, N.C.-based U.S. Tire Recycling L.P., finalized the acquisition Dec. 7.
The partnership continues to operate Lakin's only retreading plant as Achievor Tire L.P.
Achievor is the brand name of the bead-to-bead remanufactured passenger and light truck tires produced at the Chicago facility.
Terms of the sale were not disclosed.
In November, TIRE BUSINESS ranked Lakin as the second-largest passenger tire retreader in North America based on pounds of tread rubber used per year.
Former Lakin tire division president Richard Gust, who has been named president of Achievor, said he does not expect the new ownership to affect operations at the facility.
There are no plans for major personnel changes, he said, and the firm will continue to export tires to Mexico and Argentina.
Achievor should be able to replace sales lost last January after Sears, Roebuck and Co. announced it would no longer produce its mail-order catalog, Mr. Gust said. Lakin had realized as much as 60 percent of its tire sales through the catalog.
By the end of 1993, the company already had opened up new marketing avenues, including having its tires sold through a number of Big O Tires Inc. outlets and the Pennsylvania Farm Bureau distributing company.
``The recycled product is profit sensitive,'' Mr. Gust said. ``We want to sell it to dealers. They should know that they can sell a remanufactured tire and make a profit instead of a new tire that is priced so low they can't make a profit.''
Mr. Gust said he believes Achievor will continue to look hard at opening new sales avenues through government channels and possibly other mail-order catalogs.