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OTR Company Declines Acquisition Offer

American Tire Corporation (ATC), the company that recently appeared on the tyre industry’s radar screens after disclosing its intention to build a half million dollar OTR tyre factory in the US, reported on February 6 that it has declined an acquisition offer made by a “multi-billion dollar U.S. company.”

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According to an ATC press statement, the company received a letter of intent that ATC says “clearly expresses the investor’s strong interest in ATC and its OTR tyre business, in addition to its new project in Washington.” Furthermore, reports ATC, the unnamed company included a “big” offer for the 100% acquisition of ATC.

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Large as this offer apparently was, ATC has turned it down. “Although this offer makes sense for both the investor and ATC from the point of view of investment, it is finally refused because it is conflict with ATC’s current strategy of development,” said ATC in a press statement.

"It is important to make money as the return of an investment," said ATC president Dr. Hengyucius, "but more important for us is that we are able to enjoy the success when we directly contribute to not only the U.S. economy, but also the global community, by producing sufficient quality OTR tyres for mining and construction industries worldwide. It is our pleasure to have the opportunity to work for our global village."

He added: "We welcome outside investments all the time, but such investments shall be kept in a reasonable percentage. It is not the best choice for us to sell our business."

The company professes the ambition of becoming the “largest and best” manufacturer of 57 and 63-inch tyres. (Tyres & Accessories/Staffordshire, U.K.)

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