• ITVI.USA
    16,350.840
    -55.350
    -0.3%
  • OTLT.USA
    2.731
    0.025
    0.9%
  • OTRI.USA
    21.660
    -0.160
    -0.7%
  • OTVI.USA
    16,343.200
    -45.660
    -0.3%
  • TSTOPVRPM.ATLPHL
    3.520
    0.380
    12.1%
  • TSTOPVRPM.CHIATL
    2.960
    -0.660
    -18.2%
  • TSTOPVRPM.DALLAX
    1.610
    0.250
    18.4%
  • TSTOPVRPM.LAXDAL
    3.340
    -0.130
    -3.7%
  • TSTOPVRPM.PHLCHI
    2.100
    -0.250
    -10.6%
  • TSTOPVRPM.LAXSEA
    3.860
    -0.220
    -5.4%
  • WAIT.USA
    126.000
    -2.000
    -1.6%
  • ITVI.USA
    16,350.840
    -55.350
    -0.3%
  • OTLT.USA
    2.731
    0.025
    0.9%
  • OTRI.USA
    21.660
    -0.160
    -0.7%
  • OTVI.USA
    16,343.200
    -45.660
    -0.3%
  • TSTOPVRPM.ATLPHL
    3.520
    0.380
    12.1%
  • TSTOPVRPM.CHIATL
    2.960
    -0.660
    -18.2%
  • TSTOPVRPM.DALLAX
    1.610
    0.250
    18.4%
  • TSTOPVRPM.LAXDAL
    3.340
    -0.130
    -3.7%
  • TSTOPVRPM.PHLCHI
    2.100
    -0.250
    -10.6%
  • TSTOPVRPM.LAXSEA
    3.860
    -0.220
    -5.4%
  • WAIT.USA
    126.000
    -2.000
    -1.6%
BusinessNewsSupply ChainsTop StoriesTrucking

Goodyear to buy Cooper Tire for $2.5B

Acquisition doubles Goodyear’s presence in China

Goodyear Tire & Rubber Co. (Nasdaq: GT) announced Monday it will acquire Cooper Tire (NYSE: CTB) in a $2.5 billion deal to strengthen its market position in the global tire industry.

Goodyear said the acquisition of Cooper Tire doubles its presence in China while increasing the number of relationships with Chinese automakers, and also broadens distribution for Cooper replacement tires through Goodyear’s network of 2,500 branded retail stores.

The acquisition also strengthens Goodyear’s position in other North American markets, such as Mexico, where Cooper Tire acquired sole ownership of a plant in the central Mexican city of Guadalajara in 2019.

Richard J. Kramer, Goodyear chairman, chief executive officer and president, said the deal is a “transformational day for our companies.” 

“The addition of Cooper’s complementary tire product portfolio — with Goodyear’s technology — provides the combined company with opportunities for improved cost efficiency and a broader offering for both companies’ retailer networks,” Kramer said in a statement.

Brad Hughes, Cooper president and chief executive officer, said “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.”

The combined company will have $17.5 billion in 2019 sales. The transaction is expected to close in the second half of 2021.

Goodyear’s transaction to acquire Cooper has a total enterprise value of $2.5 billion. Under terms of the 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. 

Akron, Ohio-based Goodyear Tire’s acquisition of fellow Ohio tire maker Cooper Tire creates one of the largest tire manufacturers in the world. Findlay, Ohio-based Cooper is the fifth-largest tire manufacturer in North America by revenue, with about 10,000 employees in 15 countries. 

The two largest global tire manufacturers are Bridgestone and Michelin.

Goodyear, founded in 1898, is the third-largest tire maker in the world. Goodyear brands include Goodyear, Fulda, Dunlop, Kelly, Debica and Save. The company has about 62,000 employees and 46 factories around the world, as well as innovation centers in Akron and in Luxembourg.  

Click for more FreightWaves articles by Noi Mahoney.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1999. Mahoney has more than 20 years experience as journalist, working for newspapers in Florida, Maryland and Texas. Contact nmahoney@freightwaves.com

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