QUINCY, Ill. (April 1, 2011)—Titan Tire Corp. has completed its acquisition of Goodyear's Latin American farm tire business for about $98.6 million, subject to post-closing conditions and adjustments.
The transaction includes Goodyear's Sao Paulo, Brazil, tire plant, property, equipment and inventories and a licensing agreement that will allow Titan to sell Goodyear-brand farm tires in Latin America and North America.
Titan's proposed purchase of Goodyear's farm tire assets in Europe is still pending as Goodyear works through the closing requirements, Titan said.
“Over the next 18 to 24 months, we believe Latin America revenue can grow up to approximately $400 million by adding OTR radials and other earthmover and construction tires to the facility,” said Maurice M. Taylor, chairman and CEO of Titan Industries Inc., parent of Titan Tire.
Revenue generated by the Sao Paulo plant is running at about $250 million annually, Titan said, split roughly 50:50 between farm product sales and non-agriculture products that Titan will build for Goodyear under supply agreements.