MOSCOW (April 25, 2005) – Amtel Group has completed its acquisition of Vredestein Banden N.V., paying the Dutch tire maker's parent company $256 million in cash.
The acquisition, pending since November, will “contribute significantly” to Moscow-based Amtel's becoming a pan-European company, said Amtel Chairman Sudhir Gupta.
Buying Vredestein provides Amtel access to technology and manufacturing expertise, European and North American distribution networks, a market-focused product mix and additional management and human resource capabilities, said Amtel CEO Alexei Gurin.
"Vredestein Banden will continue to focus on manufacturing high- and ultra-high performance tires, as well as R&D and industrial design programs," said Robert Oudshoorn, Vredestein Banden CEO. “The combination of Amtel and Vredestein Banden should provide employees with exciting opportunities to work in a wide area of different disciplines.”
Amtel concluded the deal through its Amtel Holdings Holland N.V. subsidiary.
The addition of Vredestein will boost Amtel's annual production capacity more than 50 percent to about 22 million tires at five plants -– three in Russia and one each in Ukraine and the Netherlands. Amtel also controls a carbon black and a chemical plant in Russia and reports annual sales of more than $350 million.
Enschede, Netherlands-based Vredestein reported 2004 sales of $286 million. Its plant makes more than 17,000 car, light truck, farm and industrial tires a day.
Vredestein, an independent company since 1946, is represented in North America by Vredestein Tyres North America in Metuchen, N.J.