Bridgestone Corporation has announced that its group company, Bridgestone Mining Solutions Australia Pty Ltd, has entered an agreement to acquire Otraco International Pty Ltd, a leader in off-the-road (OTR) tyre management solutions, from Downer EDI Limited.
This acquisition will accelerate the growth of Bridgestone’s global mining solutions business and expand the company’s service network in key markets such as Australia, Chile, and South Africa.
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 transaction, valued at AUS$79 million (approximately ¥6.6 billion), is expected to close by the end of 2021. The sale is subject to regulatory approvals and other customary closing conditions. The impact of this acquisition on Bridgestone’s consolidated financial results for 2021 will be minor.
As outlined in the company’s Mid-Term Business Plan, Bridgestone is strengthening investments in its core tire business while also pursuing merger and acquisition activities that expand and enhance its sustainable solutions offering. Bridgestone is moving swiftly to deliver sustainable mobility and advanced solutions that create value for customers and society.
“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 lifecycle, such as its computerised Otracom platform. Otraco’s offering will complement Bridgestone’s world-class OTR products and solutions, including Bridgestone MasterCore surface mining tyres and the tyre monitoring and management solution.
Read the article online at: https://www.globalminingreview.com/finance-business/27042021/bridgestone-to-acquire-octraco-otr-tire-management-solutions-from-downer/