CHICAGO – Bridgestone Americas Holding Inc. (BSAH) has entered into an agreement to acquire Bandag Inc. for $1.05 billion in cash, according to Modern Tire Dealer magazine. The transaction is expected to close late in the first quarter or early in the second quarter of 2007. Bandag, which enjoys 45 percent of the United States truck tire retread market, will operate as a wholly owned subsidiary of BSAH. BSAH will acquire outstanding shares of each class of Bandag stock for $50.75 per share. Bandag has more than 900 franchised dealers. In addition, it owns and operates Tire Distribution Systems Inc. (TDS), a commercial retail operation, and holds majority interest in Speedco Inc., a provider of on-highway truck lubrication services. Bandag posted worldwide sales of $921 million in 2005.

Originally posted on Fleet Financials

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