Bridgestone Corporation (Bridgestone) has announced that its group company Bridgestone Mining Solutions Australia Pty. Ltd., has completed acquisition of Otraco International Pty Ltd (Otraco)*1, an Off-the-Road (OTR) tire management solutions provider, from Downer EDI Limited. on December 1, 2021, after getting regulatory approvals and satisfying other customary conditions. The transaction is valued at AUD 79 million (approx. JPY 6.6 billion*2).
This acquisition is a part of strategic growth investment to accelerate global expansion of its solutions business planned in the Mid Term Business Plan (2021-2023)*3, aligned with the vision “Toward 2050, Bridgestone continues to provide social value and customer value, as a sustainable solutions company.” Bridgestone defines mining tire and solutions business as an important major business, in which the Group continuously and proactively injects its strategic resources.
Otraco is an OTR tire management solutions provider, having skilled tire technicians located at mine sites in Australia, Chile and South Africa. It also provides its proprietary computerized tire management system (Otracom) for safe and efficient operations of mining customers.
Otraco will reinforce Bridgestone Group’s service network, which is already in a global leading position. It will also create synergy with the Group’s mining tire and solutions business.
Bridgestone Group provides proprietary mining tire and solutions business globally, which aims to support safe and efficient operations of mining customers, contributing to the improvement of their productivity, and addressing sustainability issues such as reduction of CO2 emissions and increasing resource productivity.
Based on the Mid Term Business Plan (2021-2023), the Bridgestone Group will execute strategic growth investments to strengthen its tire business as core business, and expand its solutions business as growth business, to evolve into a sustainable solutions company that continues to provide social and customer value.
Bridgestone expects the impact on its consolidated financial results for 2021 to be minor.
<Overview of Otraco>
- Company Name : Otraco International Pty Ltd
- Location of Headquarter : Brisbane, Queensland, Commonwealth of Australia
- Representative : Gregory Glennon
- Number of employees : Approximately 860 (as of March 31, 2021)
- Capital : 2,630,919 AUD (as of March 31, 2021)
- Operations : Maintenance, monitoring and asset management solutions of OTR tires