AKRON (Dec. 13, 2010)—Titan Tire Corp. has agreed to buy Goodyear's European and Latin American farm tire businesses for about $130 million.
Goodyear said the deal with Titan Tire's parent, Titan International Corp., includes a licensing agreement through which Titan will make and sell Goodyear-brand farm tires in Europe, Latin America and North America. The agreement is subject to post-closing conditions and adjustments.
Goodyear put the European and Latin American farm tire businesses up for sale in May 2009. Titan bought Goodyear's North American farm tire business, including a plant in Freeport, Ill., in 2005.
The Latin American portion of the transaction includes Goodyear's Sao Paulo, Brazil plant, property, equipment and inventories, Goodyear said. That deal is expected to close in the first half of 2011.
The European portion of the transaction 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, factory and required consultation with the local Works Council. After that is done, as well as customary closing conditions and regulatory approvals, the transaction will include the Amiens North plant, property, equipment and inventories.
The sale will reinforce Goodyear's focus on its core consumer and commercial tire businesses, said Richard J. Kramer, Goodyear chairman and CEO.