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Goodyear completes sale of farm tire business to Titan Tire

Agriculture.com Staff 01/04/2006 @ 11:10am

The Goodyear Tire & Rubber Company last Wednesday said it had completed the previously announced sale of its North American farm tire assets to Titan Tire Corporation, a subsidiary of Titan International, Inc. for $100 million. The sale includes a licensing agreement with Titan to pay a royalty to manufacture and sell Goodyear-branded farm tires in North America, including Mexico.

The deal also includes Goodyear's farm tire manufacturing plant, property and equipment in Freeport, Illinois, as well as its inventories.

"Closing the acquisition has been a long haul, and with this acquisition the Goodyear brand will again become the number one brand in North American farm tires, replacing Firestone, which is Japanese owned," Maurice M. Taylor, chairman and CEO of Titan, said in a company release.

"Goodyear tires have been a vital part of the American farm for nearly a century," said Jonathan D. Rich, president of the company's North American Tire business. "This transaction helps that relationship continue and allows us to increase our focus on our core consumer and commercial tire businesses."

Rich expressed confidence that Titan Tire will seek to maintain relationships with Goodyear farm tire dealers and the farming community and thanked the company's farm tire associates and dealers for their many years of service and support.

Goodyear says it expects to record a loss of approximately $65 million on the sale. The acquisition is expected to increase Titan sales by approximately $250 million in 2006, according to the company.

Goodyear is the world's largest tire company.

The Goodyear Tire & Rubber Company last Wednesday said it had completed the previously announced sale of its North American farm tire assets to Titan Tire Corporation, a subsidiary of Titan International, Inc. for $100 million. The sale includes a licensing agreement with Titan to pay a royalty to manufacture and sell Goodyear-branded farm tires in North America, including Mexico.

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