Oct 1, 2007 12:00 PM

Michelin North America Inc has signed a definitive agreement to acquire Oliver Rubber Co, a subsidiary of Cooper Tire & Rubber Co, which produces tread rubber and retreading equipment. The acquisition will be completed upon receipt by the parties of necessary regulatory approvals. After the acquisition, Oliver will operate as a subsidiary of Michelin North America Inc.

This acquisition will complement the manufacturing capability and service network of Oliver with that of the Michelin Retread Technologies (MRT) network, enabling Michelin to extend its reach in the commercial retreading market. In 2005, Michelin announced a major expansion of its tread manufacturing facility in Covington GA and, earlier this month, the opening of a new manufacturing facility in Mexico.

Terms of the transaction include a cash purchase price of $69 million. The transaction is subject to final due diligence, as well as Federal Trade Commission and United States Department of Justice approval.