Galaxy and Dynamic to Merge Forming GPX
Galaxy Tire & Wheel and Dynamic Tire Corp have agreed to merge. As a result a new company, GPX Tyre & Wheel, will be formed. According to an official statement the new company is expected to record sales of more than $300 million in 2005 and holds assets in excess of $100 million. “The will provide the solid foundation and critical mass necessary for GPX Tire & Wheel to become one of the leading global players in the agricultural, industrial, commercial and off-the-road tyre markets,” the statement says. For the time being the two companies will operate in parallel as separate entities. The merger is expected to be completed by the end of this calender year.
The two constituent businesses see themselves as “extremely complementary companies,” adding that the merger will provide them with tremendous synergistic capabilities. In addition the Boston and Toronto based businesses see a bright future in Europe. GPX’s expansion in this continent will springboard from the company’s Serbian factory and the companies hope this will provide much greater penetration of the European markets.
Dynamic Tire, voted one of the 50 best managed companies in Canada for the last two years, brings logistic strength to the partnership. Dynamic reports that is has grown at an annualised rate of 50 per cent since its inception in 1997. Galaxy will bring its engineering capabilities and well regarded brand name to the relationship.
Following the move there is a strong likelihood that GPX will seek out acquisition opportunities in both China and Europe “in order to augment its existing production capabilities.” This is said to be due to high demand for both Galaxy and Dynamic products.