Greenville, South Carolina -- Michelin North America Inc. has signed a definitive agreement to buy retread materials supplier Oliver Rubber Co. from the Cooper Tire & Rubber Co. in a deal that includes $69 million (â‚¬50.5 million) in cash.
The decision to sell Oliver is "part of Cooper Tire's ongoing efforts to focus on our core business and Michelin's interest in growing their retreading business in North America,"said a Cooper spokeswoman, in an 31 July email to ERJ.
The sale is subject to various government approvals. It includes all assets owned by Oliver including plants in Asheboro and Salisbury, North Carolina, according to a Cooper spokeswoman. About 350 employees are affected. The divested business reports annual sales of about $100 million and is profitable, the spokeswoman told Tire Business.
â€œOliver's manufacturing capacity, product portfolio and experienced work force are a terrific complement to Michelin's current retread operation,â€ said Luc Minguet, COO of Michelin Americas Truck Tire, in a joint statement. â€œWe believe the two brands, managed according to Michelin's strategic focus, will offer the North American trucking industry broader access to products and services to better meet their needs.â€
Oliver has 110 licensees in North America, compared with Michelin's 41, according to Tire Business data.
Earlier this year Bridgestone Americas Holding Inc. finalised its $1050 million purchase of Bandag Inc., which had 187 licensees and 345 plants in North America.
From Tire Business (A Crain publication)