Goodyear Agrees To Sell Engineered Products Business To Carlyle Partners Entity EPD, Inc. |
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By: James Dyson Posted: 2007-03-24 09:13:48 |
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The Goodyear Tire & Rubber Company (NYSE: GT - News) today announced that it has agreed to sell substantially all of its Engineered Products business to EPD, Inc., an entity sponsored by Carlyle Partners IV, L.P., for $1.475 billion, subject to certain post-closing adjustments.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals as well as EPD's completion of a labor agreement with the United Steelworkers union. As part of the transaction, Goodyear has agreed to a trademark licensing agreement with EPD to use the Goodyear brand and certain other trademarks in connection with the Engineered Products business. Goodyear expects to record a gain on the sale, the amount of which has not yet been finalized. "This transaction reinforces our focus on our core consumer and commercial tire businesses and on improving our balance sheet," said Robert J. Keegan, Goodyear chairman and chief executive officer. "We anticipate using the proceeds for purposes including reducing debt, addressing legacy obligations and supporting growth in our tire businesses." Specific plans regarding debt reduction and investments will be announced at a later date. "Engineered Products is a successful business with outstanding associates who have made important contributions to Goodyear. We thank them for these contributions," he added. "I'm confident the resources and business philosophy of Carlyle will support Engineered Products' growth and continued success going forward." Timothy R. Toppen, president, Goodyear Engineered Products, said the transaction will not interfere with its daily operations or on meeting customer needs. "The cornerstone of our operating philosophy stays intact - we want to help our customers grow their businesses for the long-term," he said. |
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