From Tire Review
AKRON, OH — Goodyear Tire & Rubber Co. has completed the sale of its North American agricultural tire assets to Titan Tire Corp., a subsidiary of Titan International Inc.
The $100 million purchase includes Goodyear’s ag tire manufacturing plant in Freeport, IL. Since the deal was initially announced, Titan had been negotiating for a new contract with the USW-represented Freeport workers. The deadline had to be extended five times before an agreement was reached on Dec. 22.
Goodyear said it expects to record a loss of approximately $65 million on the sale, including charges for the curtailment of employee pension and post-retirement medical plans, of which approximately $60 million will be recorded during the fourth quarter of 2005. The remainder will be recorded during 2006, according to Goodyear.
While Goodyear expects the sale to reduce revenue for its North American Tire segment by about $200 million annually, it will eliminate the need for further investment in the ag tire business.
“Goodyear tires have been a vital part of the American farm for nearly a century,” said Jonathan Rich, president of the company’s North American Tire division. “This transaction helps that relationship continue and allows us to increase our focus on our core consumer and commercial tire businesses.”
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