Titan Tire Corp., a subsidiary of Titan International, Inc., announced that it has entered into agreements with the Goodyear Tire & Rubber Company to buy their 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, Africa, Eastern Europe, Russia, Latin America and North America, for approximately $130 million U.S. dollars, subject to post-closing adjustments.
The Company did a similar deal with Goodyear when Titan purchased the assets of Goodyear's North American farm tire business, including a plant in Freeport, Illinois, in December of 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, it is expected to close in the first half of 2011.
The European portion of the transaction is subject to the exercise of a put option by Goodyear following completion of a social plan related to the previously announced discontinuation of consumer tire production at its Amiens North, France manufacturing plant and required consultation with the local Works Council. Upon completion of this action, as well as customary closing conditions and regulatory approvals, the transaction will include the Amiens North plant, property, equipment and inventories.
"Titan is pleased to be adding these new regions to our current book of global business," said Maurice M. Taylor Jr., Chairman and CEO. "These acquisitions support our global vision of becoming the premier farm tire manufacturer in the world. In the past these assets have had sales in excess of $400 million U.S. dollars annually. Going forward, my expectations are to increase the sales in a short period of time."
