Bandag (BDG), a maker of retreading materials, agreed to be acquired by tiremaker Bridgestone Americas for about $1.05 billion in cash.
Bridgestone will pay $50.75 a share for Bandag, representing a premium of 13% over the company's Monday closing price of $45.04.
"Bandag is a leader in the retreading business, with a strong global reputation for quality, service and technology, as well as an extensive worldwide dealer network," said Mark Emkes, Chairman and CEO of Bridgestone Americas, in a statement. "The joining of Bridgestone Americas and Bandag will allow the two companies to better service their customers by offering a comprehensive tire maintenance solution, backed by a complete line of new and retread truck tire offerings."
The companies expect the deal to close late in the first quarter or early in the second quarter of 2007.Shares of Bandag recently were up $5.28, or 11%, to $50.32.