Cooper completes CCT sales transaction
Cooper Tire closed the sales of its 65% ownership in Cooper Chengshan (Shandong) Tire Company Ltd (CCT) to Chengshan Group Company Ltd for around $262 million net of taxes and including dividends in accordance with the previously announced option agreement.
Cooper will file pro forma financial statements in conjunction with a Form 8-K related to the transaction with the U.S. Securities and Exchange Commission (SEC), said the company in a statement.
“Resolving the ownership of CCT has been a key goal for us, and we are pleased to have it completed as we continue to execute our long-term growth plans for China,” said Cooper Chairman, Chief Executive Officer and President Roy Armes.
“With the closing, offtake agreements go into effect under which CCT will continue to produce Cooper-branded products, including Roadmaster tyres, through mid-2018. The purpose of the offtake agreements is to provide a secure source of product while also allowing Cooper the flexibility to continue to identify and develop alternative sources for these tyres. This could take a variety of forms including an agreement with another supplier, a joint venture, an acquisition, adding capacity to our other facilities, buying a facility and running it ourselves, or building a new plant. We have the financial capacity to take any of these paths or a combination that best serves our business and our customers,” Armes added.