Pensler Apparently Out of the Running on Bryan Plant
(Akron/Tire Review) Pensler Capital Corp. is out of the running to buy Continental Tire North America’s (CTNA) OTR tyre plant in Bryan, Ohio, sources told Tire Review. Titan International now appears to be the front-runner to obtain the giant tyre facility.
Pensler, said sources, held a number of negotiating sessions with the United Steelworkers and USW Local 890 to facilitate the purchase, but the union rejected each offer made. Pensler, which owns Denman Tire Corp, came into the bidding in January and had signed a letter of intent to buy the plant on 16 January.
Before finalizing the planned purchase of the plant, Pensler had to negotiate a new master contract with the USW and Local 890. A previous purchase deal between CTNA and German retreaders Roesler Group fell apart last summer when the union and Roesler could not come to a basic contract agreement.
There was no information as to whether Titan, which had been rumoured to be negotiating for the plant, has or will made an offer. In December, Titan completed its purchase of Goodyear’s agricultural tyre business and accompanying Freeport, Illinois, plant.
Currently, Titan is considering an $18 per share offer from One Equity Partners, a move that will effectively take the tyre and wheel maker private.