According to media reports, on December 20, tire manufacturer Bridgestone announced that it has sold its Russian assets to S8 Capital, and the transaction has received all necessary regulatory approvals. As a Russian holding company, S8 Capital has acquired multiple assets from Western companies exiting the Russian market.
"The agreement will include the sale of the tire manufacturing plant in Ulyanovsk and Bridgestone's sales and marketing departments in Moscow," Bridgestone said. "The transfer of assets to S8 Capital is not expected to have a significant impact on the overall forecast for 2023." The company also stated that approximately 1,000 of its employees in Russia will transition to S8 Capital. The price of the transaction has not been disclosed at this time.
Bridgestone has been operating in Russia since 1998; however, due to the Russia-Ukraine conflict, the company suspended all production activities in Russia in March 2022 and froze new investments, following the lead of many other foreign companies. In 2022, amid uncertainty and ongoing supply issues, the Tokyo-based Bridgestone began seeking buyers.
Last year, Bridgestone stated that Russia accounted for less than 2% of its revenue.
On the other hand, S8 Capital stated that the annual production capacity of the Ulyanovsk factory is 2.4 million tires. Combined with the assets previously acquired from tire manufacturers Continental and Cordiant, S8 Capital's annual tire production capacity is now expected to exceed 15 million units.
According to S8 Capital, "Under the terms of the deal, Bridgestone's trademark and brand will not be transferred to the new owner."
S8 Capital is owned by Russian entrepreneur Armen Sarkisian, and its main business involves IT solutions in the financial, retail, and telecommunications sectors.
In addition, the company has also acquired Russian assets previously owned by elevator manufacturer Otis Worldwide Corp and German technology group Bosch.
