Goodyear completes sale of Engineered Products unit to Carlyle
AKRON - Goodyear has completed the sale of its Engineered Products division to EPD Inc., an affiliate of Washington-based Carlyle Partners IV L.P., for almost USD 1.5 billion.
The deal follows Carlyle´s successful negotiations of a five-year master contract with the United Steelworkers July 30. The agreement took effect Aug. 1 and covers about 1,600 workers at four Engineered Products plants in St. Marys, Ohio; Lincoln, Nebraska; Sun Prairie, Wisconsin; and Marysville, Ohio. Engineered Products operates 32 plants in 12 countries, employing about 6,300 and generating USD1.5billion in sales. The deal with Carlyle mirrors one worked out with Goodyear, according to a union spokesman, with some minor exceptions, including an increase of USD3 in the pension multiplier, bringing it up to USD58, in August 2009, and some minor increases in health care costs in 2010. Goodyear said it anticipates net proceeds of about USD1.4billion on the sale and expects to record an after-tax gain on the sale in the third quarter. It will use the proceeds to reduce debt, address legacy costs and invest in its tirebusinesses.