Goodyear, Treadco to combine truck tire retreading business

AKRON (Sept. 18)—Goodyear and Treadco Inc. are combining their commercial tire retreading and distribution businesses into a joint venture company. The deal also gives Goodyear the option of eventually buying out Treadco´s interest in what will be the world´s largest truck tire service network. Goodyear will own 60 percent of Wingfoot Commercial Tire Systems L.L.C., which will control 194 commercial tire centers and 77 retreading plants and post annual sales of $650 million. The new company will take effect Oct. 31, pending approval by the Federal Trade Commission. Goodyear has the option of buying Treadco´s 40-percent share after April 30, 2003, and before Oct. 31, 2004, for $77.5 million, while Treadco can decide to sell its interest during that period for $72.5 million. . The new company plans to convert Treadco´s 21 retreading plants to the Goodyear system from their current Oliver Rubber Co. configurations as soon as possible, a spokesman said. John R. Meyers, president and CEO of Treadco, will be chairman and CEO of Wingfoot Tire, and Michael R. Thomann, marketing director, commercial tires at Goodyear, will become president and chief operating officer.