FINDLAY, OHIO — Cooper Tire & Rubber Co. has signed a definitive agreement to sell its automotive business, Cooper-Standard Automotive, to an entity formed by The Cypress Group and Goldman Sachs Capital Partners for approximately $1.165 billion in cash.
The Cypress Group is by now a familiar name to many in the aftermarket. The private equity group recently bought Dana Corp.’s Automotive Aftermarket Group, which has been renamed Affinia.
Cooper-Standard Automotive is a manufacturer of fluid handling systems, body sealing systems and active and passive vibration control systems, primarily for automotive original equipment manufacturers. The group is headquartered in Novi, Mich., and had revenues of approximately $1.6 billion in 2003.
The transaction, which is expected to close in the fourth quarter of 2004, is subject to the purchaser’s receipt of financing from committed sources and other customary conditions, including the receipt of regulatory approvals.
Commenting on the announcement, Thomas Dattilo, chairman, president, and CEO of Cooper Tire & Rubber Co. said “We are pleased with the transaction terms reached with Cypress and Goldman. We look forward to pursuing growth opportunities in our tire business. We believe that after the transaction is completed Cooper-Standard Automotive will be well-positioned for continued strong growth under its new ownership.”
Dattilo also said that proceeds from the sale will be used for debt reduction, investment in Cooper’s tire operations, to repurchase shares or a combination thereof.
Lazard Freres & Co. LLC served as financial advisor to Cooper Tire & Rubber for this transaction.
For more information about Cooper Tire & Rubber Co., visit: http://www.coopertireandrubber.com.
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