Galaxy, Dynamic Merger Completed
(Akron/Tire Review) The merger of Galaxy Tire & Wheel Inc. and Dynamic Tire Corp. has been completed, resulting in the creation of GPX International Tire Corp. The Boston-based Galaxy Tire and Toronto-based Dynamic Tire announced their merger plans this past June.
Combined as GPX, the companies will post some $300 million in sales for 2005, officials said, and will have operations in North America, Europe and Asia. GPX officials said that the new firm will market Galaxy and Primex brands as its “flagship” tyre brands.
In addition, GPX said it has “several exclusive marketing and distribution contracts covering the US and Canada that involve radial medium truck and radial OTR tyres,” which it presumably will market in North America.
GPX will have seven distribution centres in the US – Massachusetts, New York, Pennsylvania, Tennessee, Alabama, Texas and California – and four in Canada.
“After four months of planning, GPX is confident that a significantly fortified financial position will be realized as the merger has created a number of significant cost saving and consolidation opportunities,” the company said in a statement. “This will allow GPX to concentrate on evaluating additional opportunities for product development and manufacturing designed to meet the ever-increasing market demand for Galaxy and Primex tyres.”
Bob Sherkin, chairman of GPX, said, “Our engineering team, which includes some 30 experts in three continents, is second to none in the work-tire segment. This expertise, combined with our focused expansion of production capacity will allow us to deliver our promises of product differentiation, high availability and industry-leading quality.”
GPX officials said that they anticipate earning additional OE business with its new array of brands and products. “OE business represents an important component of our strategic focus,” said Bryan Ganz, GPX president.