Titan buys Goodyear's ag tire units in Europe and Latin America

Titan is purchasing Goodyear’s European and Latin American farm tire divisions for $130 million.

The transaction includes a licensing agreement allowing Titan to manufacture and sell Goodyear-branded agricultural tires in Europe, Latin America and North America.

“Titan is pleased to be adding these new regions to our current book of global business,” says Maurice M. Taylor Jr., Titan’s chairman and CEO.

“These acquisitions support our global vision of becoming the premier farm tire manufacturer in the world,” he reports. “In the past these assets have had sales in excess of $400 million U.S. dollars annually. Going forward, my expectations are to increase the sales in a short period of time,” adds Taylor.

“This transaction reinforces our focus on our core consumer and commercial tire businesses,” says Richard J. Kramer, Goodyear’s chairman and CEO.

“Our farm tire operations have been very successful for many decades. We thank our associates for their contributions,” Kramer continues, expressing his confidence that Titan – for which agricultural tires are a core business – “will maintain the company’s strong relationships with Goodyear farm tire customers as well as the regions’ farming communities.”

Goodyear announced plans to explore selling the European and Latin American ag operations in May of 2009. The company had sold its North American farm division, including a plant in Freeport, Ill., to Titan in 2005.

The Latin American portion of the transaction includes Goodyear’s Sao Paulo, Brazil manufacturing plant, property, equipment and inventories. Pending “customary closing conditions and regulatory approvals,” the deal is expected to close in the first half of 2011, according to Kramer.

The European aspect of the sale “is subject to the exercise of a ‘put option’ by Goodyear following completion of a social plan related to the previously announced discontinuation of consumer tire production at its Amiens North, France manufacturing plant and required consultation with the local Works Council,” Kramer explains. “Upon completion of this action – as well as customary closing conditions and regulatory approvals – the transaction will include the Amiens North plant, property, equipment and inventories.”

Titan has scheduled a conference call to discuss the purchase with the investment community on Wednesday, Dec. 15 at Noon Eastern time.

For more information, visit www.titan-intl.com and www.goodyear.com.