Huntsman Holdings Corp., the Salt Lake-based umbrella company for Huntsman Chemical Corp. and other subsidiaries, has begun negotiations to buy "substantially all" of Goodyear Tire & Rubber Co.'s businesses that manufacture plastic films for food covering and industrial applications.
Sales price was not disclosed. A Huntsman spokesman said the acquisition represents a "diversification and expansion opportunity into a strong business area complementing its existing affiliated business efforts and experience."The acquisition is expected to be completed before the end of June, pending government approvals and signing of a final agreement.
Stanley C. Gault, chairman of Goodyear, based in Akron, Ohio, said in a release that proceeds of the sale will be used to reduce Goodyear's corporate debt.
"This acquisition is an integral part of our future business and growth strategy," said Jon M. Huntsman, chairman of Huntsman Holdings. "It is the first step in both diversifying and integrating our chemical interests. We welcome the film products employees to our family business and assure them of an exciting future."
Huntsman and its affiliate companies, all privately owned by the Huntsman family, are the largest producers of polystyrene in North America and among the largest worldwide in production of styrene monomer, expandable polystyrene and polypropylene. Huntsman Holdings also has interests in specialty plastics for packaging.
A spokesman said there are currently no plans to eliminate any of the 500 manufacturing, technical, sales, marketing and administrative jobs involved in the acquisition, although some employees will be relocated who are now occupying Goodyear facilities. Goodyear's current labor contract for unionized employees will be honored, the spokesman said.
Goodyear's film business produces PVC blown and cast films for industrial and food-related applications, such as for packaging meat, cheese and produce in supermarkets. Polyethylene films have mainly industrial uses as stretch pallet wrap, shrink-film bundle and specialty packaging.
Huntsman said the sale will include Goodyear's film manufacturing facilities in Akron; Merced, Calif.; Calhoun, Ga.; and Toronto; the Wingfoot film plants in Carrollton, Ohio, and Bowling Green, Ky.; Co-Ex Plastics in Lewisburg, Tenn.; and overseas operations in Phillippsburg, Germany, and Thomastown, Victoria, Australia.
The deal does not include Goodyear's Reneer Films Corp. and its films plant in Brazil. Goodyear said Reneer is for sale separately and the Brazil operation will continue as a Goodyear subsidiary.