AKRON (Dec. 16) — Goodyear will purchase the remaining 50 percent interest in its South Pacific Tyres joint venture from partner Ansell Ltd. for about $40 million.
Goodyear also will repay about $50 million of outstanding loans to South Pacific, the company said.
South Pacific has operations in Australia and New Zealand and the purchase will strengthen the tire maker´s position in both countries, said Pierre E. Cohade, president of Goodyear´s Asia/Pacific business unit. It enhances the firm's flexibility and earnings growth in the region, he said.
Ansell, a manufacturer of rubber latex gloves and condoms, has been looking to sell its share of the operation for some time, and in November said it intended to exit the business soon.
South Pacific was formed in 1987 and today has about 4,000 employees. Its annual sales are in the $700 million range.