TRELLEBORG, Sweden (Dec. 31, 2012) — Trelleborg Wheel Systems S.p.A. has finalized its deal to buy Maine Industrial Tire L.L.C., the Wakefield, Mass.-based solid tire maker, an acquisition that will add more than $90 million in annual sales to Trelleborg's ledger.
Trelleborg Wheel, a unit of Trelleborg-based Trelleborg A.B., did not disclose the acquisition price at this time.
Maine Tire was owned by a group of investors headed by the Ganz family, whose relationship with the company goes back to the founding of Ganz TIre in 1922.
Maine Industrial Tire produces solid tires for a variety of vehicles, especially for forklifts, 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 broaden its industrial tires portfolio, which focuses on solid tires used in warehousing, logistic operations, airports, etc.
"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 traces its roots to two pioneering families in the tire business — the Ganz family of Massachusetts and the Elowitch family of Maine, who formed "Maine Rubber" in 1949. The firms eventually became part of GPX Tire International, then became Maine Tire in 2010 following GPX's bankruptcy.
Trelleborg did not say how Maine Tire will be integrated with its existing North American sales operation, Trelleborg Wheel Systems Americas Inc. in Fairlawn, Ohio, near Akron.