The Goodyear Tire & Rubber Company has announced that it is set to acquire the Cooper Tire & Rubber Company in a deal worth around $2.5 billion.
Goodyear tells us that the acquisition will expand its 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.
Upon closing of the transaction, Goodyear shareholders will own approximately 84 per cent of the combined company, and Cooper shareholders will own around the remaining 16 per cent.
“This is an exciting and transformational day for our companies,” said Richard J. Kramer, Goodyear chairman, chief executive officer and 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.
“We are confident this combination will enable us to provide enhanced service for our customers and consumers while delivering value for shareholders.
“We have a great deal of respect for Cooper’s team and share a commitment to integrity, quality, agility and teamwork. We look forward to welcoming Cooper to the Goodyear family.”
Cooper Tire & Rubber Company’s portfolio of brands includes Cooper, Mastercraft, Roadmaster and Mickey Thompson.