Japan's Bridgestone exits Russia with asset sale to serial buyer S8 Capital (updated)

BRIDGESTONE

20/12/2023 11:54

(Adds ownership detail in paragraph 8)
       Dec 20 (Reuters) - Japan's Bridgestone Corp  5108.T ,
one of the world's top tyremakers, said on Wednesday it had sold
its Russian assets to S8 Capital, a Russian holding company that
has now scooped up a handful of assets from departing Western
firms.
    Bridgestone, present in Russia since 1998, decided in March
2022 to suspend all manufacturing activities and freeze new
investments in Russia following the Moscow's invasion of
Ukraine, a step taken by many other foreign companies. 
    Tokyo-based Bridgestone, which cited uncertainty and ongoing
supply issues when it started looking for a buyer in 2022, said
its around 1,000 employees in Russia would transfer to S8
Capital. The deal's price was not disclosed. 
    "The agreement includes a tyre manufacturing plant in
Ulyanovsk and a sales and marketing office in Moscow,"
Bridgestone said. "The impact of the transfer of its assets to
S8 Capital on its consolidated projections for 2023 is to be
minor."
    Russia represented less than 2% of its revenues, Bridgestone
said last year. The deal has received all necessary regulatory
approvals, it said. 
    S8 Capital said the Ulyanovsk factory had production
capacity of 2.4 million tyres per year. Adding to its previous
purchases of assets formerly owned by tyremakers Continental
 CONG.DE  and Cordiant, S8 assets will now have production
capacity of more than 15 million tyres annually. 
    "According to the terms of the deal, Bridgestone's
trademarks and brands are not transferred to the new owner," S8
Capital said. 
    S8 Capital is owned by Russian entrepreneur Armen Sarkisian,
and develops IT solutions in finance, retail, and
telecommunications.
    The company has also acquired assets previously owned by
elevator maker Otis Worldwide Corp  OTIS.N  and German
technology group Bosch. 

 (Reporting by Alexander Marrow and Gleb Stolyarov; editing by
Alison Williams)
 ((alexander.marrow@thomsonreuters.com;))