Findlay, Ohio — Cooper Tire & Rubber Co. has closed the sale of its 65-percent ownership in Cooper Chengshan Tire Co. Ltd. to Chengshan Group Co. Ltd. for about $262 million (€210 million) net of taxes and including dividends in accordance with the previously announced option agreement.
The firm said it will file pro forma financial statements in conjunction with a Form 8-K related to the transaction with the US Securities and Exchange Commission.
Cooper’s third quarter 10-Q filing with the Securities and Exchange Commission listed the valuation of CCT, determined by an independent firm, at about $437.7 million.
“Resolving the ownership of CCT has been a key goal for us and we are pleased to have it completed as we continue to execute our long-term growth plans for China,” Roy Armes, Cooper chairman, CEO and president, said in a statement.
Armes said with the closing, offtake agreements go into effect. CCT will continue to produce Cooper-branded products — including Roadmaster tires — through mid-2018.
“The purpose of the offtake agreements is to provide a secure source of product while also allowing Cooper the flexibility to continue to identify and develop alternative sources for these tires,” the executive said.