Cooper Completes Sale of Automotive Unit
Cooper Tire & Rubber Company (Findlay/Ohio) has completed the sale of its automotive business, Cooper-Standard Automotive, to an entity formed by The Cypress Group and Goldman Sachs Capital Partners for approximately $1.165 billion in cash, subject to certain post-closing adjustments. As previously announced, $30 million of the purchase price will be held by the buyer until the post-closing working capital adjustments can be finalized.
The sale included the 47 manufacturing facilities and operations of Cooper-Standard Automotive, which is a global manufacturer of fluid handling systems, body sealing systems, and active and passive vibration control systems, primarily for automotive original equipment manufacturers. The group is headquartered in Novi, Mich., and had revenue of approximately $1.6 billion in 2003.
Thomas A. Dattilo, chairman, president, and chief executive officer of Cooper Tire & Rubber Company, said, “We are very pleased to conclude this transaction with Cypress and Goldman. The sale will allow us to focus more fully on our core business and will provide the flexibility and capital necessary to grow the tyre business to its full global potential. We look forward to pursuing growth opportunities in North America as well as in key strategic markets around the world.”
The company reiterated that the proceeds from the sale will be used for debt reduction, the repurchase of shares, investment in its tyre operations, or a combination thereof. In addition, the Company announced that it intends to allocate approximately $60 million of the proceeds to fund various pension plans related to continuing operations. No further specific allocation for the use of proceeds was provided.
Cooper Tire & Rubber Company now is specialized in the manufacture and marketing of replacement tyres for the global automotive industry. Products include automotive, motorcycle and truck tyres as well as tread rubber and equipment for the commercial retread industry. Cooper has more than 9,000 employees and eight manufacturing facilities. Most popular brands are: Cooper, Mastercraft, Avon, Mickey Thompson, Laramie, Procomp, Dean, Cordovan.