MUSCATINE, IOWA — Bandag Inc. has acquired an 87.5 percent majority interest in Speedco Inc. from its founders and Shell Oil Products US. Headquartered in Cuyuga, Ind., Speedco provides quick-service truck lubrication nationwide through 26 company-owned and six licensed on-highway locations.
Bandag will operate Speedco as an independent business unit. The company’s three founding partners, who retain a 12.5 percent minority stake in the business, will continue in their current roles. Mark Clark will remain as president and CEO, Jeff Clark has been named vice president, finance and administration and treasurer, and Jim Dudley will serve as vice president, planning and development.
Bandag paid approximately $56 million for the 87.5 percent interest and to retire $20.1 million of debt, which resulted in $0.9 million of interest expense in 2003.
Speedco generated unaudited revenues of approximately $46 million and pretax income of approximately $4.8 million in 2003. Bandag expects earnings per share to improve between 10 cents and 15 cents in 2004 due to this acquisition.
Speedco will continue to feature Shell Rotella T Heavy Duty Motor Oil as well as other Shell lubricants used in its services.
To learn more about Bandag, go to: http://www.bandag.com/
