Bridgestone to acquire Bandag Inc.

Bridgestone to acquire Bandag Inc.

Japan based tire manufacturer Bridgestone has said that they are acquiring Bandag Inc, which specializes in making tire retreading materials and equipment.

The deal is worth around $1.05 billion and it would be conducted through a cash transaction. After this announcement, the Bandag shares jumped $5.51, or 12.2 percent, to $50.55 in early trading on the New York Stock Exchange.

Bridgestone’s offer puts the share price of the company at $50.75 per share.

Bandag had sales of around $921 million last year and after the completion of this deal, it would become a part of Bridgestone Americas. The deal is expected to close by the middle of next year.