Goodyear acquires Cooper in all-American tire combination
The deal, which has been approved by the boards of both companies, is expected to close in the second half of this year.
Credit: AP
In this Aug. 20, 2020 file photo, signage for the Goodyear Distribution Center stands in Topeka, Kan. (Evert Nelson/The Topeka Capital-Journal via AP, File) Author: Associated Press Updated: 8:25 AM EST February 22, 2021
NEW YORK Two of the biggest remaining American tire companies are joining forces.
Goodyear Tire & Rubber Co. is acquiring Cooper in a deal valued at $2.5 billion that will combine the two century-old Ohio manufacturers.
Cooper, founded in 1914, is the 5th largest tire maker in North America based on revenue. The company has about 10,000 employees in 15 countries. In addition to the Cooper brand, it also owns Mastercraft, Roadmaster and Mickey Thompson.
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.
Goodyear acquires Findlay-based Cooper limaohio.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from limaohio.com Daily Mail and Mail on Sunday newspapers.