Goodyear's EP unit goes to Carlyle group

Washington, DC - Global private equity firm

The Carlyle Group announced on Friday that it has signed a definitive agreement

to acquire The Goodyear Tire & Rubber Company's Engineered Products

Division in an all-cash transaction valued at $1475 million.  The

transaction is subject to customary closing conditions, including the receipt

of regulatory approvals as well as completion of a labour agreement with

the United Steelworkers union.  

Founded in 1898, Goodyear Engineered Products

manufactures hoses, conveyor belts and power transmission belts, as well

as tank tracks for military and off-road vehicles.  With approximately

$1500 million in sales, the Company serves more than 4500 customers around

the world in a variety of end markets.  Goodyear Engineered Products

employs approximately 6500 in 32 manufacturing facilities worldwide,

including approximately 3100 associates in the United States.

Following

the transaction, the Company's headquarters will remain in Akron, Ohio

and current management, including President and CEO Timothy  Toppen,

will continue to lead the business.

Carlyle managing director Daniel  Pryor

said, “We are extremely excited about this unique opportunity.  Goodyear

Engineered Products' served markets offer many opportunities for growth,

both in the US and internationally, and the Company has achieved leading

positions under Goodyear's ownership.  We look forward to working

with Goodyear Engineered Products' management and employees, as well as

the United Steelworkers, to further build the business off this strong

base.”

Lehman Brothers and Latham & Watkins

LLP advised Carlyle on the transaction. Financing for the transaction was

arranged by Lehman Brothers, J.P. Morgan Securities Inc., and Goldman Sachs

Credit Partners LP.