Bridgestone to purchase Bandag

| 12/13/2006

An Iowa company that controls nearly half the market for re-treading truck tires is being bought out by Bridgestone Tires.

Bridgestone announced it will pay a little more than $1 billion for Bandag, which has 900 dealers in 100 countries and manufacturing facilities in the U.S. and four other countries.

Bandag's chairman told employees the deal is necessary because of increasing prices for raw materials, the Quad City Times reported.

In acquiring Bandag, Bridgestone also gets Speedco, the commercial truck lube and tire service company in which Bandag owns controlling interest.