Goodyear sells Latin American farm tire business
The Goodyear Tire & Rubber Co. has completed the sale of its Latin American farm tire business to Titan Tire Corp., a subsidiary of Titan International Inc. The $99 million sale includes the company’s Sao Paulo, Brazil manufacturing 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.
“This transaction reinforces our focus on targeted market segments,” says Richard Kramer, Goodyear chairman and CEO. “Our Latin American farm tire operations have been very successful for many decades. I’m confident this will continue and that Titan will maintain our strong relationships with Goodyear farm tire customers.”
Goodyear announced agreements to sell its Latin American and European farm tire businesses to Titan in December 2010 (see “Titan to buy Goodyear's European, Latin American farm units”).
The European portion of the transaction has not yet been completed. If it is, Goodyear says its operating results are not expected to be materially affected, excluding any gain or loss on the sales. The impact on segment operating income will vary by region.