The Goodyear Tire & Rubber Company (NYSE: GT) today announced that it has entered into agreements with Titan Tire Corporation, a subsidiary of Titan International Inc., to sell its European and Latin American farm tire businesses, including a licensing agreement that will allow Titan to manufacture and sell Goodyear-brand farm tires in Europe, Latin America and North America, for approximately $130 million, subject to post-closing conditions and adjustments.
Goodyear announced plans to explore the sale of the European and Latin American farm tire businesses in May 2009. The company sold its North American farm tire business, including a plant in Freeport, Ill., to Titan in 2005.
The Latin American portion of the transaction includes Goodyear's Sao Paulo, Brazil manufacturing plant, property, equipment and inventories. Subject to customary closing conditions and regulatory approvals, that portion of the transaction is expected to close in the first half of 2011.
"This transaction reinforces our focus on our core consumer and commercial tire businesses," saidRichard J. Kramer, Goodyear chairman and chief executive officer. "Our farm tire operations have been very successful for many decades. We thank our associates for their contributions," he added.
Kramer expressed his confidence that Titan, for whom farm tires are a core business, will maintain the company's strong relationships with Goodyear farm tire customers as well as the regions' farming communities.
Assuming both the Latin American and European portions of the transaction are consummated, the company's operating results, excluding any related gain or loss on the sales, are not expected to be materially affected, although the impact on segment operating income will vary by region.
Goodyear is one of the world's largest tire companies. It employs approximately 70,000 people and manufactures its products in 56 facilities in 22 countries around the world. Its two Innovation Centers inAkron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry.