AKRON (Dec. 16, 2005) — Goodyear has agreed to buy Ansell Ltd.'s remaining interest in South Pacific Tyres (SPT) Ltd. in a deal valued at about $90 million—$40 million in cash—making Goodyear 100-percent owner of the Somerton, Australia-based joint venture.
The agreement is subject to government and other approvals, Goodyear said. Under the agreement, Goodyear will pay for Ansell's 50-percent ownership of SPT, a tire manufacturer and marketer with operations in Australia and New Zealand. Goodyear also will repay about $50 million of outstanding loans from Ansell to SPT.
The move will improve Goodyear's flexibility and earnings potential in that region, the tire maker said.
“We are excited to own 100 percent of SPT in Australia and New Zealand and to have a leadership position in these important markets,” said Pierre Cohade, president of Goodyear's Asia-Pacific business unit.
SPT has annual sales of more than $700 million and 4,000 employees. SPT's financial results were merged with Goodyear's Asia-Pacific results in January 2004.
Goodyear formed SPT in 1987 with Pacific Dunlop Ltd., the predecessor company to Ansell.