(Akron/Tire Review) A press statement issued today by FdG Associates, a private equity company based in New York City, indicated that it is assisting Hercules Tire & Rubber Co. to “recapitalise its business in partnership with management.”
According to the statement, “This transaction will allow Hercules to strengthen its financial base, further develop its private label programme, solidify its position in the distribution of private label and branded tyres, and capitalise on growth opportunities. Hercules’ relationships with its customers and suppliers will remain unchanged.”
No other information was made available, and, according to the statement, “further details will be made available shortly when the transaction closes.”
Treadway Exports Limited, one of the largest tyre wholesaling companies in North America, has announced that it will be changing its name. From 1 November the company will be known as Hercules International. According to Treadway, the name change is designed to align the parent company with its export division.
Hercules Tire & Rubber Company has appointed Bruce Campbell to the newly created position of Director of Commercial Sales. His task will be to develop new business and increase current commercial business with Hercules stockholders, distributors and commercial tyre dealers. Mr. Campbell has an extensive background in the commercial tire business, most recently with TCI/Michelin.
Cooper Tire & Rubber Co. announced the intention, as of June 30, 2001, to purchase certain manufacturing assets used in Hercules’ retread operation and will soon begin to supply retread products to customers formerly served by Hercules. This purchase will significantly increase sales in the Oliver Retreading Systems and Products unit, which is a part of Cooper’s new commercial division. Also included in this sale are certain assets of the Cedco equipment division, which will benefit Oliver’s Salisbury equipment operation. The final price is subject to certain valuations at closing but will not exceed $8.5 million.