Goodyear (GT) Agrees To Acquire Ventech Systems Of Germany

The Goodyear Tire & Rubber Company (NASDAQ:GT) announced that it has agreed to acquire Dorsten, Germany-based automated tire inspection technology company Ventech Systems GmbH from Grenzebach Maschinenbau GmbH. The acquisition is in sync with Goodyear’s strategy of focusing on innovation and a connected business model. This acquisition is likely to bolster the Akron, OH-based global tire manufacturing company’s mobile tire and fleet management solutions capabilities.

Founded in 2006, Ventech Systems offers innovative measuring devices for the car market. Its fully automated tire inspection system can easily check tire pressure and vehicle weight. In recent years, the Goodyear Proactive Solutions business of Goodyear has worked with Ventech Systems to incorporate its technological and analytical capabilities into its fleet management solutions. Upon closure of the acquisition, which is expected to be in the fourth quarter, Ventech Systems will be included in Goodyear Proactive Solutions’ business.

For Ventech Systems, Goodyear’s market presence presents huge growth opportunities. With unique technology, the company can support Goodyear's fleet customers through efficiency, process optimization, efficiency and safety.

Goodyear’s shares have outperformed the industry it belongs to in the past six months. During this time frame, shares of the company declined 8.6%, whereas the industry decreased by 10.2%.



Currently, Goodyear carrries a Zacks Rank #4 (Sell).

A few top-ranked automobile stocks are Toyota Motor Corporation (NYSE:TM) , Daimler AG (OTC:DDAIF) and Volkswagen (DE:VOWG_p) AG (OTC:VLKAY) . While Toyota and Daimler sport a Zacks Rank #1 (Strong Buy), Volkswagen carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Toyota has a long-term growth rate expectation of 7%.

Daimler has an expected long-term earnings growth rate of 2.8%

Volkswagen has an expected long-term earnings growth rate of 8.9%

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