Goodyear has acquired rival tire manufacturer Cooper in a transaction valued at $2.5 billion USD, the Akron, Ohio based company has announced.
Goodyear entered a definitive transaction agreement with Cooper this week, which it says will help to “create a stronger U.S.-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.”
Cooper shareholders will receive $41.75 per share in cash as part of this deal, along with a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share. When the transaction is complete, Goodyear shareholders will own approximately 84% of the resulting combined company, while Cooper shareholders will own approximately 16%.
“This is an exciting and transformational day for our companies,” Richard J. Kramer, Goodyear chairman, chief executive officer and president, said in a prepared statement. “The addition of Cooper’s complimentary tire 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 look forward to the opportunity to combine Cooper’s considerable talents with Goodyear’s, and to be part of a bigger, stronger organization that will be competitively well-positioned to win in the global tire industry,” added Cooper CEO Brad Hughes.
Goodyear expects to achieve $165 million worth of run-rate cost synergies within the first two years of the transaction’s close date. In addition to helping it achieve cost synergies, this transaction will also double Goodyear’s presence in China and will enable the company to distribute budget-friendly Cooper replacement tires through its 2,500 global branded retail storefronts, strengthening its competitive position in the U.S. and abroad.
The merger is expected to close in the second half of 2021.
Goodyear tires are available on a range of GM products, including the Chevy Camaro ZL1 1LE, which comes standard with Goodyear Eagle F1 Supercar rubber.
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Comments
Cooper was one of last two surviving American tire manufacturers along with Good Year, so now remained only one. All others; Uniroyal, General, BFGoodrich, Firestone, Hoosier bought by foreigners.
While not a large player, Specialty Tires of America with plants in PA and TN is still in business. Mainly commercial and race tires. McCreary is one of their larger brand names.
Yes there is a small segment of specialty tire companies like Mcreary and M&h but they are so small.
A Sad Day.
Here in Akron al, the tire companies like Firestone, BFG, Zuni royal and General were bought up and became secondary lines to larger German, French and Japanese companies.
Goodyear is not only still American based and owned but recommitted to the city of Akron Ohio with a new headquarters building.
Goodyear survived a buy out back in the 80’s and went through tough times but fought back to where they are today.
This buy out will also give Goodyear Avon tire, Mickey Thompson and Cipeck tire production as well Mastercraft to add to their own Lee, Kellyspringfield and Dunlop lines.
In 2013 Cooper was going to be bought by an Indian tire company in a deal that collapsed. It’s much better that it was bought by an American firm.
Interesting. Did anyone know, Cooper has been making both Mickey Thompson and Dick Cepek tires, for years? Lets see if Goodyear will continue this venture. While not super large in sales, the two combined brands, can make Goodyear a ton of money. Let’s see if it continues. Goodyear hasn’t had a good offroad tire, since th late ’70s. We will be watching
Let’s hope Cooper continues to be made in the US. I’ve been a Goodyear / Kelly buyer my entire life and have been happy with the quality and service.
I am picky about tires and goodyears are hit and miss,goodyear fortitudes came on my new silvy and by looking at them I thought they were highway treads I could not read the window sticker due to the sun shining on it only after the fact i found out they were considered A/T at a cost of $350 when you can find them for about $125 a tire and they were dangerous on snow and ice you had to be very cautious with them luckily it was a mild winter and next year after they were worn some they were much better but I was hot when my boss got me a new 2wd W/T colorado and they had the same fortitudes on it at no added cost of course.never had any coopers but my neighbor got some cooper A/Ts the loudest tires I have ever noticed you could here him coming down the road with the windows shut