FINDLAY, Ohio (Jan. 18)—Cooper Tire & Rubber Co. intends to use between $100 million and $200 million of the proceeds from the sale of Cooper-Standard Automotive to reduce debt and $60 million to fund pension obligations.
Cooper disclosed its intentions in an 8K filing with the Securities and Exchange Commission.
Cooper is receiving about $1.17 billion for Cooper-Standard from an entity formed by Cypress Group and Goldman Sachs Capital Partners.
The company also said it would use the rest of the proceeds, or as much as $900 million, to invest in the tire operations and/or buy back shares. The tire unit investments would include the announced acquisition of a minority stake in South Korea's Kumho Tire Co. Inc.