MILAN, Italy (July 30, 2012)—Zafco Trading L.L.C. has agreed to pay at least $5 million to license and eventually acquire the Armstrong brand from Pirelli & C. S.p.A., Pirelli said in its first half financial report.
Dubai, United Arab Emirates-based Zafco, an international tire trading entity, disclosed on July 20 its agreement with Pirelli for the mothballed Armstrong brand.
Zafco will pay at least $2.5 million in royalties over five years to license the brand and $2.5 million more to complete the acquisition, Pirelli said, of which Zafco already has paid $1 million.
Zafco said it intends to use the brand in the U.S.—which has not been in use for more than a decade—initially for farm and truck tires.