AKRON Goodyear has reached an agreement to buy Cooper Tire & Rubber Co. for $2.5 billion.
Akron-based Goodyear, the No. 3 tire maker worldwide with $13.7 billion in sales in 2019, said Monday that it had entered an agreement to purchase Findlay,Ohio-based Cooper Tire, and that the purchase had been approved by the Board of Directors of both companies.
Cooper ranks as the No. 13 tire maker globally, with 2019 sales of $2.75 billion.
In a news release issued before the opening of business on Feb. 22, Goodyear said the combined company will have approximately $17.5 billion in sales, based on 2019 figures.
Under terms of the agreement, Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ration of 0.907 shares of Goodyear common stock per Cooper share. Goodyear said the the implied cash and stock value that Cooper shareholders will receive is $54.36 per share, representing a 24 percent premium on Cooper stock, based on the close of business Feb. 19.