ERJ staff report (TB)
Quincy, Illinois -- Titan Tire Corp., a subsidiary of Titan International Inc., won approval July 15 from the US Bankruptcy Court for the Northern District in Ohio to purchase bankrupt Denman Tire Corp.'s machinery, equipment and other inventory items for $3 million. The purchase did not include any land or buildings.
The final purchase price is more than double Titan's original offer of $1.47 million on June 10 that trumped a $1.2 million offer from Soberay & Sons Inc., a Cleveland-based rubber machinery broker, which had been designated the â€œstalking horseâ€ bidder by the bankruptcy trustee.
After Soberay indicated interest in countering Titan's offer, the bankruptcy trustee held an auction in which Titan submitted the winning bid of $3 million.
Titan indicated it would be able to use the equipment to produce some of the Denman tyre types Titan plans to make with the assets it acquired already. In June, Titan purchased the Denman Tire name, tyre specifications, patents, molds, various bladder tooling, customer lists and other items, for $4.4 million.
Denman Tire ceased operations at its specialty tyre manufacturing plant in Leavittsburg, Ohio, and filed for Chapter 7 bankruptcy last March.
â€œClosing should take place within a week. Titan then plans to move the machinery and equipment,â€ said Titan Chairman and CEO Maurice Taylor Jr. â€œI believe it was a great purchase for Titan, and the machinery and equipment will complement Titan's product line.â€
Titan International owns subsidiaries that supply wheels, tyres and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.
From Tire Business (A Crain publication)