Akron, Ohio -- Titan International Inc.'s pending acquisition of Goodyear's European farm tyre business is down to its final day, and Goodyear is still working with union representatives at the French plant that's part of the deal to resolve staffing issues there.
Goodyear had not responded to requests for information as this item went to press.
Titan offered to buy the business, which covers east and west Europe and Africa, Dec. 13, 2010, for approximately $30 million.
The deal for the European business is subject to the exercise of a put option by Goodyear following completion of a social plan related to the previously disclosed phase-out of consumer tyre production at a plant in Amiens, France, Goodyear said in its 10-Q form for the third quarter. This required consultation with various works councils.
Goodyear put its European and Latin American farm tyre businesses up for sale in May 2009. Titan agreed in December 2010 to buy both businesses and closed on the Latin American assets - a plant in Sao Paulo, Brazil, property, equipment and inventories - in March.
Titan bought Goodyear's North American farm tyre business, including a plant in Freeport, Ill., in 2005.
The purchase price is expected to be about $17 million, Goodyear said. Titan said the terms of the deal also include $13 million in prepaid royalty payments, bringing the total cost to $30 million.
Titan Chairman and CEO Maurice Taylor Jr. estimated earlier that the business represents about $400 million in annual revenue short term.
It's unclear at this time what Goodyear would do with the business should the deal with Titan fall through.
From Tire Business (A Crain Publication)