The integration of the two plants will strengthen Bekaert's position in the tire cord market, while the long-term supply agreement further enhances Bekaert's status as an important external supplier of tire cord to Bridgestone. Bekaert and Bridgestone signed an agreement for the purchase by Bekaert of BMI, Sardinia (Italy) and BSSH, Huizhou (Guangdong Province, China).
The share deal includes all of the personnel and assets of the two manufacturing sites. As part of this transaction, Bekaert and Bridgestone have entered into a long-term supply agreement of tire cord to Bridgestone.
Bert De Graeve, Chief Executive Officer of Bekaert, commented: “Bekaert 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 tire cord business.
” 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.
Profile Bekaert (www.bekaert.com) is a global technological leader in its two core competences: advanced metal transformation and advanced materials and coatings, and a market leader in drawn wire products and applications. Bekaert (Euronext Brussels: BEKB) is a global company with headquarters in Belgium, employing 23 000 people worldwide. Serving customers in 120 countries, Bekaert pursues sustainable profitable growth in all its activities and generates annual combined sales of € 4 billion.
Note: BMI: Bridgestone Metalpha Italia SpA – Sardinia, Italy
BSSH: Bridgestone (Huizhou) Steel Cord Co., LTD – Huizhou, China