Bridgestone acquiring mining tyre management system supplier
Bridgestone is to acquire the Otraco OTR tyre management solutions business from Downer EDI, continuing its growth strategy. The acquisition will be made by the number one tyre manufacturer’s group company, Bridgestone Mining Solutions Australia Pty. Ltd. Bridgestone said the acquisition will accelerate the growth of its global mining solutions business and expand the company’s service network in key markets such as Australia, Chile and South Africa. Bridgestone wants to complete the transaction, valued at 79 million Australian dollars (approximately £44 million), by the end of 2021.
All business assets, including Otraco’s sales offices and training facilities, OTR customer relationships and the company’s approximately 860 employees will transfer to Bridgestone upon completion of the sale. The sale is subject to regulatory approvals and other customary closing conditions. Bridgestone added that the impact of the acquisition on its consolidated financial results for 2021 will be minor.
Bridgestone is investing in its core tyre business while also pursuing mergers and acquisitions that expand and enhance its sustainable solutions offering, a strategy outlined in the company’s Mid-Term Business Plan.
“Today we are announcing another significant step in our ongoing solutions journey,” said Masahiro Higashi, global COO and representative executive officer, Bridgestone Corporation. “Acquiring Otraco will allow us to quickly expand our mining solutions business in key markets and create growth opportunities with existing mining customers. Otraco has an extensive service network built on strong customer relationships and we are excited for their team of experts to join Bridgestone.”
Otraco offers a robust portfolio of OTR tyre management solutions that track tyres across the full life cycle, such as its computerized Otracom platform. Otraco’s offering will complement Bridgestone’s world-class OTR products and solutions, including Bridgestone MasterCore*3 surface mining tyres and the tyre monitoring and management solution.