Cooper Tire & Rubber Company has said it intends to purchase certain manufacturing assets of Hercules Tire & Rubber Company that were used for its retread operation and will supply retread products to customers formerly served by Hercules.
Hercules will retain its manufacturing facilities in Findlay, OH and Guntersville, AL, and the sale will not affect its custom-mix business or any of its tire distribution business. The sale does include certain assets of the Cedco equipment division.
“We were looking for an opportunity to increase sales in our retreading operation and Hercules fits perfectly with our Oliver Retreading Systems and Products unit,” said Larry Enders, Cooper's commercial products president. “We are ready to serve an expanded customer base and are looking forward to meeting the needs of our retreading customers.”
Hercules president Craig Anderson said the sale of its retreading assets will allow Hercules to focus its efforts on its growing custom-mixing business and to expand its worldwide tire distribution network. Anderson noted that for the past four years, its custom-mix business has grown by more than 35% per year, equaling nearly 50% of its current rubber sales.
“We can now commit and focus our 100-million pounds of capacity to this industry,” Anderson said.
Cooper and Hercules officials said they will work together to make the transition for all dealers as smooth as possible, assuring dealers a consistent supply of products during the transition. Oliver's sales force will begin serving the Hercules dealers as soon as the transaction is finalized.
The companies expect the transaction to close on June 30.