Goodyear sells subsidiary to Sartomer for $65 million
The Goodyear Tire & Rubber Co. has agreed to sell its Wingtack adhesives resins business to Sartomer Company Inc., a unit of the French energy firm Total S.A.
The transaction, pending government and regulatory approvals, is subject to customary closing conditions.
Goodyear will receive approximately $65 million for the business, which includes a manufacturing operation in Beaumont, Texas. The operation is adjacent to Goodyear's synthetic rubber production facility there, which will continue to supply raw materials for Wingtack production.
"A profitable business with high quality products, adhesives resins are not core to our chemicals operation, which is increasingly focused on supplying our tire businesses with synthetic rubber," says Robert Keegan, Goodyear's chairman, CEO and president.
"We thank our Wingtack associates for their contributions to Goodyear over the years and anticipate this will continue with Sartomer, which is part of one of the largest resins manufacturers in the world."
Goodyear's adhesives resins business produces Wingtack brand hydrocarbon resins that are used in a variety of pressure-sensitive and hot melt applications. The business has approximately 115 associates.
Sartomer, headquartered in Exton, Pa., has operations in West Chester, Pa., Channelview, Texas, Stratford, Conn., Chatham, Va., Chatom, Ala., and Grand Junction, Colo.
Goodyear's stock price on the New York Stock Exchange closed at $14.24 a share on Friday, June 24. That compares to a 52-week high and low of $16.09 and $8.70, respectively.