Retail

Cooper reports value of Chinese plant

Posted on August 27, 2014

Cooper Tire and Rubber Co. reports the fair market value for its Chinese plant to be US $440 million at the current exchange rate.

The valuation of Cooper Chengshan (Shandong) Tire Company Ltd. (CCT) was completed by an independent firm responsible for determining a fair market value on a stand-alone basis, excluding the value of trademarks and technologies licensed by Cooper to CCT.

The valuation is the option price.

Under the option agreement between Cooper and its partner, Chengshan Group Company Ltd.:

* Chengshan has the first option to elect, within 45 days, to purchase Cooper’s 65% interest in CCT for 65% of the option price, to sell its 35% interest in CCT to Cooper for 35% of the option price, or not to exercise either of these options;

* If Chengshan determines not to exercise either the put or call option, Cooper has the right to purchase Chengshan’s 35% interest in CCT for 35% of the option price; and

* In the event that neither party elects to purchase the other’s interest in CCT, the option agreement provides that the joint venture will continue as currently structured.

Further, should Chengshan purchase Cooper’s stake in the joint venture, Cooper will continue to have offtake rights with CCT agreeing to produce Cooper-brand products, including truck and bus radial tires, for a minimum of three years.

“We look forward to final resolution of the ownership of CCT as Cooper continues to pursue our growth plans for China,” says Chairman, Chief Executive Officer and President Roy Armes.

Related Topics: Cooper Chengshan (Shandong) Tire (CCT), Cooper Tire & Rubber Co., Roy Armes

Comments ( 0 )
More Stories
Bobby Hendry from 31 Inc. was from one of 80-plus vendors at the Tire Factory trade show. Here he talks to Mike Fleming, equipment supply manager for the dealer group, and Marc Thompson from Point S Everett in Everett, Wash.
News

Point S Rebranding Exceeds Expectations in the U.S., and Points to More Growth

Tire Factory Inc. members have rebranded the vast majority of their 206 stores to the Point S banner at a breakneck pace. And leaders of the Oregon-based cooperative are unveiling new programs with two big hopes: the momentum of current members continues, and more independent tire dealers join their network.

News

Cooper Enjoys a Full-Year Income-to-Sales Ratio of 8.5%

Cooper Tire & Rubber Co. posted net income of $69.3 million on net sales of $783.9 million for its fourth quarter ended Dec. 31, 2016. That compares to income of $59.2 million on sales of $775.5 million for the same period in 2015.

ATV has added 6 stores to its network of American Tire Depot stores in California.
News

ATV Opens 6 American Tire Depot Stores

ATV Inc. has acquired six stores in the greater Los Angeles metro area. The purchase expands ATV's network of American Tire Depot stores to 98 outlets, all in California.

News

MATDA Joins TIA's Social Media Platform

The Mid-America Tire Dealers Association (MATDA) has joined the social media content platform developed by the Tire Industry Association (TIA) and the Automotive Marketing Foundation (AMF).

News

Toyo’s Net Tire Sales Drop 6.7% in 2016

Toyo Tire & Rubber Co. Ltd. reported a net loss of 12.3 billion yen on net sales of 381.6 billion yen for its fiscal year ended Dec. 31, 2016. That compares to net income of 1.6 billion yen on net sales of 407.8 billion yen for fiscal 2015.

News

Feb. 15 Webinar: Take 1 Hour to Learn Why Customers Buy

An upcoming free webinar, "Commitments: Understanding Customer Buying Decisions," will help improve your retail selling experience. It will be held today, Wednesday, Feb. 15, 2017, starting at 2 p.m. ET (11 a.m. PT), and last an hour.

News

Michelin’s Net Income Rises 43% in 2016

Margins on consumer tires helped boost Groupe Michelin’s net income 43% in 2016. Michelin posted net income of 1.7 billion euros on net sales of 20.9 billion euros for its fiscal year ended Dec. 31, 2016. That compares to income of 1.2 billion euros on sales of nearly 21.2 billion euros for fiscal 2015.

Michelin is donating $10,000 to help families in Mexico on behalf of its BFGoodrich Tire brand.
News

After Big Wins in Baja, BFGoodrich Brand Gives Back

The BFGoodrich tire brand developed its off-road identity four decades ago in the Baja peninsula in Mexico. Now Michelin North America Inc. is recognizing the region's importance with a $10,000 donation.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!