Goodyear has completed its purchase of the remaining shares of South Pacific Tyres Ltd. (SPT), giving the Akron-based tire maker 100-percent control of the tire marketer and manufacturer in Australia and New Zealand.
When first announced, the deal for the remaining 50 percent was valued at about $90 million, including $40 million in cash. Goodyear also said it would repay about $50 million of outstanding loans from Ansell Ltd. to SPT.
``This move strengthens Goodyear's position in these countries and enhances its flexibility and earnings growth prospects in the Asia/Pacific region,'' said Pierre Cohade, president of Goodyear's Asia/Pacific business unit.
SPT's financial results have been consolidated with those of Goodyear's Asia/Pacific unit since January 2004. SPT has annual sales of more than $700 million and 4,000 employees.
Goodyear formed SPT in 1987 with Pacific Dunlop Ltd., the predecessor company to Ansell. SPT operates tire plants in Somerton, Australia, and Wellington, New Zealand, along with 17 retread plants and a chain of more than 400 retail stores in Australia, according to Goodyear's fiscal 2005 10K filing with the Securities and Exchange Commission.