Goodyear to acquire Cooper to expand its product portfolio and tyre business

Combined company will have about $17.5 billion in pro forma 2019 sales.

By:February 27, 2021 10:01 AM

 

The Goodyear Tire & Rubber Company and Cooper Tire & Rubber Company have announced they have entered a definitive transaction agreement under which Goodyear will acquire Cooper in a transaction with a total enterprise value of about $2.5 billion. “The transaction will expand Goodyear’s product offering by combining two portfolios of complementary brands. It will also create a stronger US-based manufacturer with increased presence in distribution and retail channels while combining both companies’ strengths in the highly profitable light truck and SUV product segments,” Goodyear said in a statement. The combined company will have about $17.5 billion in pro forma 2019 sales. Under the terms of transaction, Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of $2.8 billion.

Founded in 1914, Cooper is the fifth-largest tyre manufacturer in North America by revenue with 10,000-odd employees working in 15 countries. The company’s portfolio of brands includes Cooper, Mastercraft, Roadmaster and Mickey Thompson. “This is a transformational day for our companies,” said Richard J Kramer, Goodyear chairman, CEO & president. “The addition of Cooper’s complementary tyre product portfolio and highly capable manufacturing assets, coupled with Goodyear’s technology and industry leading distribution, provides the combined company with opportunities for improved cost efficiency and a broader offering for both companies’ retailer networks.”

Brad Hughes, Cooper president & CEO, added, “We believe it represents an attractive opportunity to maximise value for our shareholders. We look forward to the opportunity to combine Cooper’s considerable talents with Goodyear’s.”

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