Jun 30 2004
The Goodyear Tire & Rubber Company has completed its previously announced acquisition of the remainder of Sava Tires d.o.o., a tire manufacturing company in Kranj, Slovenia.
The move, according to Goodyear Chairman and Chief Executive Officer Robert J. Keegan, strengthens the company’s position as the second-largest tire maker in Europe and enhances its low-cost sourcing capabilities.
"We are very pleased to complete our purchase of Sava Tires," said Keegan. "Sava Tires and its quality products are playing an important role in our success in Europe." Sava Tires exports more than 80 percent of its production. The majority of its exports go to other European countries.
In the first quarter of 2004, combined sales for Goodyear’s two European-based tire businesses increased more than 20 percent over the same period last year. Combined segment operating income increased 144 percent.
After exercising its call option to purchase the remaining 20 percent of Sava Tires owned by Slovenia’s Sava d.d. for approximately $52 million, Goodyear will transfer it to the company’s 75 percent-owned Goodyear Dunlop Tires Europe affiliate.
In 1998, Goodyear acquired its original 60 percent stake in Sava Tires. It bought an additional 20 percent in 2002. This 80 percent had previously been transferred to Goodyear Dunlop Tires Europe.
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