Goodyear completes sale of rubber plantation to Bridgestone
Goodyear Tire & Rubber Co. has completed the previously announced sale of its stake in Goodyear Sumatra Plantations (GSP) to Bridgestone Corp. for approximately $62 million, subject to post-closing adjustments.
Goodyear said the decision to sell its 95% stake in GSP is "consistent with (our) strategy to focus on core business activities."
Goodyear, one of the largest users of natural rubber in the world, supports agricultural and economic initiatives that encourage its development. This transaction is not expected to significantly impact the company's ability to acquire natural rubber for its operations, according to the company.
GSP, which began operations in North Sumatra, Indonesia, in 1917, has approximately 5,000 employees.
Goodyear recorded a non-cash after-tax charge of $15.6 million in the fourth quarter of 2004 in connection with the transaction, due primarily to the write-off of cumulative foreign currency translation.
Goodyear's stock was selling for $17.94 a share at the close of the New York Stock Exchange on Monday, Aug. 8. That compares to a 52-week high and low of $18.59 and $9.15, respectively.