Auto Service World
News   March 26, 2007   by Auto Service World

Goodyear to Sell Engineered Products Group

The Goodyear Tire & Rubber Company today announced that it has agreed to sell substantially all of its Engineered Products business to EPD, Inc., an entity sponsored by Carlyle Partners IV, L.P., for $1.475 billion, subject to certain post-closing adjustments.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals as well as EPD’s completion of a labour agreement with the United Steelworkers union.
As part of the transaction, Goodyear has agreed to a trademark licensing agreement with EPD to use the Goodyear brand and certain other trademarks in connection with the Engineered Products business.
Goodyear expects to record a gain on the sale, the amount of which has not yet been finalized.
“This transaction reinforces our focus on our core consumer and commercial tire businesses and on improving our balance sheet,” said Robert J. Keegan, Goodyear chairman and chief executive officer.
“We anticipate using the proceeds for purposes including reducing debt, addressing legacy obligations and supporting growth in our tire businesses.”
Timothy R. Toppen, president, Goodyear Engineered Products, said the transaction will not interfere with its daily operations or on meeting customer needs.
“The cornerstone of our operating philosophy stays intact – we want to help our customers grow their businesses for the long-term,” he said.
Goodyear Engineered Products operates 32 facilities in 12 countries and has approximately 6,500 associates.
It manufactures and markets engineered rubber products for industrial, military, consumer and transportation original equipment end-users.
The product portfolio of the business includes hose, conveyor belts, power transmission products, rubber track, molded products and air springs.
In 2006, Engineered Products had sales of approximately $1.5 billion.
The Carlyle Group is one of the world’s largest private equity firms with $54.5 billion under management, investments in more than 185 companies and 750 employees in 16 countries.
In the aggregate, Carlyle portfolio companies have more than $68 billion in revenue and employ more than 200,000 people around the world.

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