Downer has completed the sale of Otraco, its tyre management solutions business, to Bridgestone Mining Solutions for an enterprise value of $79 million.
Bridgestone’s acquisition of Otraco is part of a strategic growth investment to accelerate the global expansion of its solutions business outlined in its mid-term business plan.
Otraco is an off-the-road (OTR) tyre management solutions provider that has skilled technicians located at mine sites in Australia, Chile and South Africa.
“The sale of Otraco follows Downer’s exit from its underground mining, Open Cut Mining West, Downer Blasting. Services and Snowden consulting businesses and also our share in the RTL Mining and Earthworks joint venture,” Downer chief executive officer Grant Fenn said.
Otracom is Otraco’s exclusive computerised tyre management system for safe and efficient operations at mines, providing a comprehensive, real-time solution for managing tyres, rims and chains fitted to heavy vehicles.
Bridgestone was established in 1931 and provides proprietary mining solutions in more than 150 countries, focussing on safe and efficient operations of mining customers, contributing to the improvement of their productivity, addressing sustainability issues and increasing resource productivity.
Bridgestone Group will execute strategic growth investments to strengthen Otraco as a core business and expand Bridgestone to evolve into a sustainable solutions company that continues to provide social and customer value.
Otraco will reinforce Bridgestone Group’s service network, which is already in a global leading position by creating synergy with the mining solutions business.
Downer is the leading provider of integrated services in Australia and New Zealand using world-leading insights and solutions to design, build and sustain assets, infrastructure and facilities.
The impact of this acquisition on Bridgestone’s consolidated financial results for 2021 will be minor.