Cooper can move forward with Cooper-Standard sale

Dec. 1, 2004

Cooper Tire & Rubber Co. can move forward with the sale of its Cooper-Standard Automotive plants in Auburn, Ind., El Dorado, Ark., and Bowling Green, Ohio, after reaching an agreement with the United Steelworkers of America (USWA), who had tried to block the sale with a court injunction.

The injunction has been dissolved and the USWA´s appeal to the United States Seventh Circuit Court of Appeals has been dismissed, according to Cooper officials.

The injunction had been granted on Nov. 2 following a complaint filed by the union in late September that claimed Cooper had to negotiate a new labor contract with Cooper-Standard´s buyer before the four plants could be legally sold.

Cooper has agreed to sell the automotive business to an entity formed by The Cypress Group and Goldman Sachs Capital Partners for $1.1 billion.

"I am please that the talks with the Steelworkers have produced an expedited and favorable conclusion," says Cooper Chairman, CEO and President Tom Dattilo.

The agreement "brings us closer to concluding the sale of Cooper-Standard without any addition cost to Cooper Tire & Rubber Co. We continue to believe that the transaction will close before the end of the year."

Specific details of the agreement are not being released.