NASHVILLE, Tenn. (June 1, 2007)—Bridgestone Americas Holding Inc. (BAH) has completed its $1.05 billion cash buyout of Bandag Inc. The deal formally closed May 31.
“This combination is a natural fit, signaling the beginning of an enhanced level of service and technology for our customers while providing the same great level of quality,” said BAH Chairman and CEO Mark Emkes. “By combining our businesses, Bandag and Bridgestone Americas will provide even better service to our customers by offering a comprehensive tire maintenance solution, backed by a complete line of new and retread truck tire offerings. Today, our two companies are one family.”
The deal was announced Dec. 5. BAH said it would acquire the outstanding shares of each class of Bandag stock for $50.75 per share. Trading of Bandag shares ceased at the close of business May 31, BAH said.
Saul Solomon, formerly vice president and general counsel for BAH, has been named chairman, CEO and president of Bandag, succeeding Martin Carver, whose family founded the retread materials and equipment supplier in 1957.
“It's a real privilege to have the opportunity to work with such an accomplished group of professionals,” Mr. Solomon said in a statement. “Both Bridgestone and Bandag are recognized leaders in their respective industries. Through the shared resources of tire and retread techonologies, our customers will have the benefit of even better products and services.”
Mr. Solomon and his family are relocating to Muscatine, where BAH has stated Bandag's headquarters will remain.
Mr. Carver will remain in an advisory role to Mr. Solomon and his team. It is not yet known what other endeavors he will pursue.
“I can't say enough about the people of Bandag—not just for what they've accomplished, but how they've accomplished it,” Mr. Carver said.
Mr. Carver added that Bandag's customers—fleets and dealers—will be able to have a total tire solutions offering. “The alignment of Bandag with Bridgestone Americas will result in a force that will be unmatched in our industry,” he said.
JPMorgan Chase & Co. acted as the financial adviser to BAH while William Blair & Co. L.L.C. acted as Bandag's financial adviser. Jones Day and Foley & Lardner L.L.P. were the legal advisers to BAH and Bandag, respectively.