17 Sep 2004
From Rubber & Plastics News
Findlay, Ohio-Cooper Tire & Rubber Co. has found a buyer, or rather two, for its Cooper-Standard Automotive business.
The buyers are Cypress Group, a New York-based private equity group that manages two private equity funds with more than $3500 million in commitments, and Goldman Sachs Capital Partners, a specialist in corporate equity and mezzanine investing with more than $5.25 billion in capital.
Cooper plans to sell the unit, which generated $1660 million in sales and $96 million in operating profits last year, for about $1170 million to an entity formed by the two capital investment firms. The sale price is slightly below that forecasted by investment analysts recently.
The transaction, expected to close in the fourth quarter, is subject to the purchasers' receipt of financing from committed sources and other customary conditions, including regulatory approvals, Cooper said.
Thomas Dattilo, Cooper chairman, president, and CEO, said the tyre maker believes Cooper-Standard will be well positioned for continued strong growth under the new ownership.
Cooper Tire will use the proceeds from the sale for debt reduction, investment in its tyre operations, repurchasing shares or a combination thereof, Dattilo said. The Findlay-based firm decided to sell the business earlier this year to focus on its higher-potential replacement tyre business.
“We look forward to pursuing growth opportunities in our tyre business,†Dattilo said.
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