Goodyear finds buyer for Engineered Products Business
Carlyle Group, one of the world´s largest private equity companies, has agreed to buy Goodyear´s engineered products business for about USD 1,48 billion. Goodyear has been shopping the nontyre business, which posted sales of about USD 1.5 billion last year, for some time. The engineered products division includes 32 facilities in 12 countries, and employs 6500 people. The purchase is subject to usual closing conditions, including regulatory approval and completion of a labour agreement between the United Steelworkers union and EPD Inc., the entity buying the operation that is sponsored by Carlyle Partners IV L.P. Goodyear said the final price is subject to certain post-closing adjustments. The division makes and markets engineered rubber products for industrial, military, consumer and transportation original equipment end-users. Among the goods it manufactures are conveyor belts, hose, power transmission products, rubber track, air springs and moulded rubber goods. EPD will use the Goodyear brand and other trademarks, a condition that is part of the deal, Goodyear said. The sale keeps the operation intact, said Timothy R. Toppen, president of Goodyear Engineered Products, and will not interfere with daily operations or meeting customer needs. Goodyear expects to record a gain on the sale. The company said the proceeds will be used to reduce debt, address legacy obligations and support the growth of its core tire business.