FINDLAY, Ohio (April 8, 2005) — Hercules Tire & Rubber Co. has signed a letter of intent to sell its custom mixed rubber business in a deal that does not affect Hercules' worldwide tire distributon operations.
The sale to Toronto-based Biltrite Industries will include a plant and equipment in Findlay, according to Larry Seawell, Hercules Tire senior vice president. Hercules in 2001 sold its tread rubber business segment to Cooper Tire & Rubber Co.
At that time, Hercules employed 21 in the custom mixing operation. Since then, the unit has increased to 48 employees and sales are 350 percent higher. Biltrite is expected to retain most of the 48 hourly and salaried employees at the unit, Mr. Seawell said.
Terms of the deal, expected to close in late April, weren't disclosed.
Hercules said it plans to re-invest proceeds from the sale into its tire operations. The company's corporate office will remain in Findlay under a lease with Biltrite.