QUINCY, Ill. (July 19, 2010)—Titan Tire Corp. won approval July 15 from the U.S. Bankruptcy Court for the Northern District in Ohio to purchase bankrupt Denman Tire Corp.'s machinery, equipment and other inventory items for $3 million.
The purchase did not include any land or buildings.
The final purchase price is more than double the subsidiary of Titan International Inc.'s original offer of $1.47 million on June 10 that trumped a $1.2 million offer from Soberay & Sons Inc., a Cleveland-based rubber machinery broker, which had been designated the “stalking horse” bidder by the bankruptcy trustee.
After Soberay indicated interest in countering Titan's offer, the bankruptcy trustee held an auction in which Titan submitted the winning bid of $3 million.
Titan indicated it will be able to use the equipment to produce some of the Denman tire types Titan plans to make with the assets it acquired already. In June, Titan purchased the Denman Tire name, tire specifications, patents, molds, various bladder tooling, customer lists and other items, for $4.4 million.
Denman Tire ceased operations at its specialty tire manufacturing plant in Leavittsburg, Ohio, and filed for Chapter 7 bankruptcy last March.
“Closing should take place within a week. Titan then plans to move the machinery and equipment,” said Maurice Taylor Jr., Titan chairman and CEO. “I believe it was a great purchase for Titan, and the machinery and equipment will complement Titan's product line.”
Titan International owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.