Legal ink dries on Cooper-Hercules retread deal
Cooper Tire & Rubber Co. has finalized its purchase of Hercules Tire & Rubber Co.'s retreading assets for the expected price of less than $8.5 million.
The transaction, which was originally announced in early May, includes certain Hercules molds, a press and the company's finished goods retread inventory, but no facilities.
"Cooper will use these assets to foster growth of its tread rubber and radial medium truck tires in support of the independent tire dealer," say Cooper officials.
Cooper has assumed all of Hercules' 200-plus retread customers throughout the United States and Canada.
"We believe our dealers will be in good hands," says Hercules President and CEO Craig Anderson.
Hercules' two retread facilities will now house the company's growing custom mixing business.
An estimated 80 Hercules production and administrative jobs are on the chopping block due to the deal's consummation.
Cooper's acquisition of Hercules' retread assets gives it 16% of the domestic retread market, according to Modern Tire Dealer research.