Sale of tire mounting business will result in 4Q write-off, says Goodyear
T&WA Inc., a tire mounting business based in Louisville, Ky., has sold substantially all of its assets to EnovaPremier LLC. Goodyear Tire & Rubber Co. had a minority ownership interest in T&WA.
Goodyear anticipates recording an after-tax, non-cash loss of $30 million to $35 million in the fourth quarter of 2007 as a result of the transaction, subject to post-closing adjustments.
According to Goodyear, T&WA's exit from the tire and wheel assembly business "is consistent with Goodyear's previously announced strategy to focus on its core consumer and commercial tire businesses." T&WA is a variable interest entity that is consolidated with Goodyear under generally accepted accounting principles.
T&WA, a minority business enterprise that was founded in 1995, supplies mounted and balanced tire and wheel assemblies to auto manufacturers. The business operates facilities in Alabama, Indiana, Kentucky and Michigan.
T&WA and EnovaPremier have not disclosed the terms of the transaction.