Cooper Tire & Rubber Co. has completed the sale of its automotive business, Cooper-Standard Automotive, to an entity formed by Cypress Group and Goldman Sachs Capital Partners for approximately $1.17 billion in cash.
The buyer will hold $30 million of the purchase price until the post-closing working capital adjustments can be finalized.
The sale included 47 manufacturing facilities and operations of Novi, Mich.-based Cooper-Standard, a global manufacturer of fluid handling systems, body sealing systems and active and passive vibration control systems for automotive original equipment manufacturers. The unit posted sales of approximately $1.6 billion in 2003.
Tom Dattilo, Cooper president, chairman and CEO, said the sale ``will allow us to focus more fully on our core business and will provide the flexibility and capital necessary to grow the tire business to its full global potential.''
The Findlay-based tire maker reiterated that proceeds from the sale will be used for debt reduction, the repurchase of shares and investment in its tire operations. Cooper also announced its intention to allocate approximately $60 million of the proceeds to fund various pension plans related to continuing operations. No further specific allocation for the use of proceeds was provided.
Lazard Freres & Co. L.L.C. served as Cooper's financial adviser on the sale.