ERJ staff report (DS)
Kortrijk, Belgium -- In a major strategic restructuring, Bridgestone has sold a large part of its steelcord activities to Bekaert, and the two parties have negotiated a long-term supply contract.
Bekaert and Bridgestone signed an agreement for the purchase by Bekaert of Bridgestone Metalpha Italia S.p.A. (BMI) and Bridgestone (Huizhou) Steel Cord Co., LTD. (BSSH). The share deal includes all of the personnel and assets of the two manufacturing sites.
The deal does not cover Bridgestone Metalpha in North America.
The transaction, with an enterprise value of approximately € 70 million, is subject to customary closing conditions and is expected to close in the second quarter of 2010.
Bridgestone said the deal will allow Bridgestone to further increase its focus on developing innovative materials for use in the company's strategic tyre products within a more streamlined operation, all while securing a stable supply of standard steel cord specifications from an external supplier with whom it has a strong relationship.
Bert De Graeve, Chief Executive Officer of Bekaert, commented: â€œBekaert has always enjoyed an outstanding relationship with Bridgestone. This agreement will lead to enhanced cooperation and supply with a leading customer and will significantly advance Bekaert's strategy of building and growing a global tyre cord business.â€
Bekaert has been a key supplier of steel cord to Bridgestone since many years. In addition to an existing steel cord supply arrangement between the two companies, Bridgestone and Bekaert in the past participated in a joint venture which developed and manufactured steel cord.
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Press release from Bridgestone
Press release from Bekaert