Cooper Tire Announces Plans to Own 100 Percent of Mexico Joint Venture Facility
FINDLAY, Ohio--(BUSINESS WIRE)--Nov 1, 2019--
Cooper Tire & Rubber Company (NYSE: CTB) today announced that it plans to increase ownership in its Mexico joint venture tire manufacturing facility, Corporación de Occidente S.A. de C.V. (COOCSA), from 58 percent to 100 percent. Cooper and Trabajadores Democraticos de Occidente S.C. de R.L. de C.V. (TRADOC), which owns 42 percent of the joint venture, have entered into a definitive agreement under which Cooper will purchase TRADOC’s stake in COOCSA. A majority of TRADOC members today voted in favor of the agreement.
Pending government approval and other customary closing conditions, it is expected that the transaction will close in early 2020. In the meantime, operations at the facility, which makes passenger car and light truck tires, will continue as usual. Cooper and TRADOC have been partners in the joint venture plant, which is located near Guadalajara, since 2008.
“Full ownership of COOCSA is an important step in our strategic plan to optimize our global manufacturing footprint with cost-competitive production of quality tires to meet market demand, in this case throughout Latin America, as well as in North America,” said Cooper President & Chief Executive Officer Brad Hughes. “We will continue to make investments to modernize the facility in the future as it produces millions of high quality tires. Cooper is thankful for the efforts over the past 11 years of our JV partner, TRADOC, and we look forward to continuing to work with them and everyone at the plant as we pursue what we are confident will be a successful future in Mexico.”
This release contains what the company believes are “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995, regarding projections, expectations or matters the company anticipates may happen with respect to the future performance of the industries in which it operates, the economies of the U.S. and other countries, or the performance of the company itself, which involve uncertainty and risk. Such forward-looking statements are generally, though not always, preceded by words such as “anticipates,” “expects,” “will,” “should,” “believes,” “projects,” “intends,” “plans,” “estimates,” and similar terms that connote a view to the future and are not merely recitations of historical fact. Such statements are made solely on the basis of the company’s current views and perceptions of future events, and there can be no assurance that such statements will prove to be true.
These forward-looking statements include, among others, statements regarding the company’s planned purchase of TRADOC’s stake in COOCSA, the expected timing of the completion of the transaction, permits and regulatory approvals, expected synergies and benefits of the transaction, the company’s planned investments in COOCSA, and expectations about future business plans and prospective performance and opportunities. There is no assurance that the potential transaction will be consummated, and there are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein, including the timing to consummate the potential transaction, the ability and timing to obtain required permits and regulatory approvals and satisfy other closing conditions, the company’s ability to finance planned investments in COOCSA and the company’s ability to realize the benefits contemplated by the potential transaction.
In addition, it is possible that actual results may differ materially from projections or expectations due to a variety of factors, including, but not limited to:
It is not possible to foresee or identify all such factors. Any forward-looking statements in this release are based on certain assumptions and analyses made by the company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that any such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected.
The company makes no commitment to update any forward-looking statement included herein or to disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement, except as required by law. Further information covering issues that could materially affect financial performance is contained in the company’s filings with the U.S. Securities and Exchange Commission (“SEC”).
About Cooper Tire & Rubber Company
Cooper Tire & Rubber Company (NYSE: CTB) is the parent company of a global family of companies that specializes in the design, manufacture, marketing and sale of passenger car, light truck, medium truck, motorcycle and racing tires. Cooper’s headquarters is in Findlay, Ohio, with manufacturing, sales, distribution, technical and design operations within its family of companies located in more than one dozen countries around the world. For more information on Cooper, visit www.coopertire.com, www.facebook.com/coopertire or www.twitter.com/coopertire.
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KEYWORD: OHIO MEXICO UNITED STATES CENTRAL AMERICA NORTH AMERICA
INDUSTRY KEYWORD: AFTERMARKET AUTOMOTIVE GENERAL AUTOMOTIVE OTHER MANUFACTURING OTHER TRANSPORT TRUCKING CHEMICALS/PLASTICS TRANSPORT AUTOMOTIVE MANUFACTURING MANUFACTURING OTHER AUTOMOTIVE TIRES & RUBBER RECREATIONAL VEHICLES PERFORMANCE & SPECIAL INTEREST OFF-ROAD TRUCKS & SUVS MOTORCYCLES FLEET MANAGEMENT
SOURCE: Cooper Tire & Rubber Company
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PUB: 11/01/2019 07:15 PM/DISC: 11/01/2019 07:15 PM