Bridgestone To Pay $1.05 Billion For Bandag
Bridgestone Corp. announced it will pay $1.05 billion in cash for Bandag Inc., the largest
“To have built up this business model on our own would have been extremely difficult in terms of time, cost and know-how," said Bridgestone CEO Shoshi Arakawa. Muscatine, Iowa-based Bandag, whose 2005 sales totaled $921 million, leads the
Bandag will be operated as a subsidiary of Bridgestone Americas. Bridgestone officials said the company would not just be adding on a retread business but that it expected many synergies, including the promotion of Bridgestone tire sales through the Bandag dealer network. Bandag and Bridgestone expect the deal to close late in the first quarter or early in the second quarter.