Following an all-cash transaction valued at approximately US$725 million, wheel manufacturer Hayes Lemmerz International, Inc. has been acquired by Iochpe Holdings, LLC, a subsidiary of Brazilian automotive and railway wheel and chassis manufacturer Iochpe-Maxion S.A. The deal will combine Hayes Lemmerz’s global wheels business with that of Iochpe-Maxion.
Venture Finance provided a funding line of £37.5 million to finance H2 Equity Partner’s recent acquisition of a controlling stake in Unipart Automotive. And what’s more there is said to be “increased appetite for structured private equity deals.”
Emerging markets, Tier 3 central to Michelin growth
At its most recent Investors Day, held at the company’s Cuneo site in Italy, Michelin confirmed its growth outlook for the coming decade. The French tyre major anticipates the global passenger car and light commercial vehicle tyre market reaching 1.5 billion units in 2015, a figure representing a 25 per cent growth on 2010 figures. Looking further ahead, an additional 20 per cent growth in the years between 2015 and 2020 is expected, with 1.8 billion tyres sold in this sector worldwide in 2020. Michelin notes that 70 per cent of this volume growth should occur in ‘new’ markets.
Unipart Group and H2 Equity Partners have officially completed the previous announced deal that sees H2 acquire a controlling stake in Unipart Automotive, one of the UK’s largest independent suppliers of car parts, workshop consumables and garage equipment.
Strong demand prompts Titan to up 2011 projections
The sales and EBITA guidance issued by Titan International on May 19 has been revised, with increases made to both figures. In a September 28 press release announcing these alterations, Titan chairman and CEO Maurice Taylor stated: “Agriculture is booming, mining is hot and construction is rebounding.
In a press release intended for all markets excepting the US, Compagnie Générale des Etablissements Michelin announced that on 21 September it repurchased more than 10 per cent of the company’s lowest-ranking subordinated notes (titres subordonnés remboursables de dernier rang), due 3 December 2033, for an aggregate nominal amount of 500,000,000 euros admitted to trading on the regulated market of NYSE Euronext Paris under ISIN FR0010034298. Following the repurchase, the outstanding nominal amount is 140,628,000 euros.
As a step towards achieving capital market viability, major Continental shareholder Schaeffler is to be transformed into a public company. The decision for the privately-owned Schaeffler GmbH to become Schaeffler AG (Aktiengesellschaft) – an entity similar to a British public limited company – was announced by Supervisory Board chairman F.W. Schaeffler on September 26. The stock corporation is expected to be entered into the commercial register in October and Schaeffler Group operations will henceforth be managed by an Executive Board.
How social nets, price comparison are influencing online tyre business
Things move quickly in the online world. Even business moves “at the speed of thought” as Bill Gates suggested in the title of his book of the same name. While the tyre industry has shown some signs of reticence when it comes to doing business over the Internet, in recent years the tide has turned and most large (and many small and medium sized) tyre companies now see online involvement as a permanent part of their business. However recent developments in social marketing and price comparison sites only go to show that if you don’t keep up you may lose out. Tyres & Accessories analysed the latest data and spoke to some leading players on the frontiers of tyre e-business to see what pitfalls and opportunities lie ahead for the UK and European tyre business.
Infinity Tyres has announced the launch of its online Press & Media Room at which news and press releases related to Infinity Tyres, the Infinity Tyres Foundation, and, any stories and media related to the Infinity family, will be first published and stored online. Infinity says it believes that this new digital platform will help journalists find “new ways of engaging their audiences.” Jorge Crespo, Infinity’s European general manager, said the Press Room is a very important digital tool because “millions of people and potential clients will now have access to Infinity’s message, whether this is regarding our product range, or the company’s interests, achievements and goals. And all of this is aimed at giving our potential customers and clients further information about all that happens within Infinity’s world.”
For sale: Itochu to divest French subsidiary Speedy
Only a few months after Japanese trading concern Itochu Corporation acquired UK fast-fit giant Kwik-Fit, the British company’s French subsidiary Speedy is, according to French media reports, up for sale. The resale of the Speedy fast-fit chain admittedly doesn’t come as a complete surprise, as from the outset Itochu expressed its main interest as being in the UK and Dutch markets.
An article on the website TruthDive suggests that cars could, in the future, be powered by electrified roadways, thus eliminating car batteries. Masahiro Hanazawa at Toyota Central R and D Labs in Nagakute, Aichi, Japan, and Takashi Ohira at Toyohashi University of Technology, also in Aichi, are developing a system that transmits electric power through steel belts placed inside two tyres and a metal plate in the road.
H2 Equity Partners has announced plans to acquire a controlling stake in Unipart Automotive, the UK’s largest independent supplier of car parts, workshop consumables and garage equipment. Unipart Automotive is currently owned by Unipart Group. The agreement, which is expected to be concluded shortly, sees H2 Equity Partners taking majority ownership in the UK operation. Unipart Group will hold onto 49.9 per cent. Patrick Kalverboer, managing partner at H2, will become executive chairman of the new company.
Shares in Cooper Tire & Rubber Company hit a new 52-week low on Monday 12 September trading at $10.36, below the previous 52-week low of $10.50. According to a report at thestreet.com, Cooper Tire & Rubber has a market capitalisation of $696 million and shares were down 53.6 per cent year-to-date at the close of trading on Friday 9 September.
Years after the credit crunch bit and the recession took hold in the North America and Europe, financial analysts are asking if the de-segmentation phenomena that saw cheaper tyre sales increase could be coming to an end. So does this mean premium tyre sales are on the up?
Following the news that Maxxis has ended its exclusive relationship with Grouptyre, and with everything pointing to the likelihood that a new distributor will soon be announced, the company has announced how it intends to make a much broader range of its car, van and 4x4 tyres available.
According to a statement released by the company, while continuing to develop its profile and grow its share of the UK tyre market, Maxxis plans to ensure that its product portfolio is readily accessible to retailers across the whole of the UK.