Bandag Inc. recently acquired 87.5 percent majority interest in Speedco Inc. from its founders and Shell Oil Products.

Speedco, headquartered in Cayuga, IN, provides quick-service truck lubrication nationwide through 26 company-owned and six licensed on-highway locations.

Bandag, a retread tire company, will operate Speedco as an independent business unit. Speedco’s three founding partners, who retain a 12.5 percent stake in the business, will continue in their current roles: Mark Clark will remain as president and chief executive officer; Jeff Clark has been named treasurer and vice president of finance and administration; and Jim Dudley will serve as vice president of planning and development.

Bandag paid about $56 million for its interest in Speedco; the company also expects to retire $20.1 million of debt, which cost the firm $900,000 in interest expenses in 2003, as part of the deal.

Speedco generated $46 million in revenue and $4.8 million in pretax income in 2003. Bandag expects its earnings per share to improve between 10 cents and 15 cents in 2004 due to the acquisition.

Company officials say Speedco will continue to feature Shell Rotella T heavy-duty motor oil, as well as other Shell lubricants used in their services.

Bandag Inc. manufactures retreading materials and equipment for its worldwide network of more than 1,000 franchised dealers that produce and market retread tires and provide tire management services.