Cooper-Standard Sale to Go-Ahead
Cooper Tire has been given the ‘go-ahead’ to sell four of it Cooper-Standard Automotive plants having reached an agreement with the United Steelworkers of America (USWA) union. As a result an appeal to the US 7th Circuit Court of Appeals will be dismissed.
Previously Cooper had been under an injunction granted on 2 November, by the US District Court in Indiana. This followed a complaint filed by the USWA asserting the right to negotiate new labour agreements with a buyer before a sale of the four union facilities.
Cooper has already announced a definitive agreement to sell Cooper-Standard Automotive for $1.165 billion to an entity formed by The Cypress Group and Goldman Sachs Capital Partners.
“I am pleased that the talks with the Steelworkers have produced an expedited and favorable conclusion,” said Thomas A. Dattilo, Cooper’s chairman, president and CEO.
Mr Dattilo added: “We have continued working toward closing our transaction with the Cypress Group and Goldman Sachs Capital Partners throughout the process of negotiating with the union. This agreement certainly brings us closer to concluding the sale of Cooper-Standard Automotive, without any additional cost to Cooper Tire & Rubber Company. We continue to believe that the transaction will close before the end of the year.”
Exact details of the agreement have not been released. Cooper expects its deal with Cypress/Goldman Sach to be completed by the end of the year.