Goodyear to Become Sole Owner of South Pacific Tyres

The Goodyear Tire & Rubber Company said it has reached agreement in principle on the final terms to acquire Ansell Limited’s interest in their South Pacific Tyres (SPT) joint ventures, pending government and other approvals.

Goodyear will pay its partner approximately $40 million for its 50 per cent ownership of the tyre manufacturer and marketer with operations in Australia and New Zealand. Goodyear will also repay approximately $50 million of outstanding loans from Ansell to SPT.

In addition to strengthening Goodyear’s position in these countries, the move, according to Pierre E Cohade, president of Goodyear’s Asia/Pacific business unit, enhances its flexibility and earnings growth prospects in the region.

“We are excited to own 100 per cent of SPT in Australia and New Zealand and to have a leadership position in these important markets,” said Cohade. “SPT, under the leadership of CEO Joseph Copeland, is making excellent progress in its turnaround.”

Formed in 1987, SPT is the leading tyremaker in Australia and New Zealand. It has 4,000 associates and annual sales of more than $700 million. Its results have been consolidated with those of Goodyear’s Asia/Pacific region since January 2004.