Goodyear acquires Cooper in massive tire deal – Cleveland, Ohio

Cleveland, Ohio 2021-02-22 11:24:42 –

Editor’s Note: The video above is from the Goodyear Airship.

Akron, Ohio (AP) – Two of the remaining largest American tire companies are working together.

Akronbase Goodyear Tire & Rubber Co., Ltd. Has acquired Cooper for a $ 2.8 billion share value that consolidates Ohio manufacturers two centuries ago.

Founded in 1914, Cooper is the fifth largest tire manufacturer in North America based on revenue. The company has approximately 10,000 employees in 15 countries. In addition to the Cooper brand, it also owns Mastercraft, Roadmaster and Mickey Thompson.

for Goodyear, A larger company, this deal will almost double its presence in China. Cooper will have access to 2,500 Goodyear retail stores. The two companies had total sales of $ 19.5 billion in 2019. Combined, the new company will save about $ 165 million within two years of closure and free cash to save taxes.

It also brings together a variety of tire brands under one roof, including the Goodyear Dunlop and Kelly brands, the Cooper Mastercraft and Mickey Thompson brands.

The automotive industry has survived a year of whirlwind with a pandemic and all the economic turmoil that accompanies it. Industry analysts expect the vaccine to recover this year as it is more widely distributed, but many do not expect activity to reach 2019 levels before the pandemic occurs.

However, the shares of both companies have risen sharply over the past year, especially in the last three months.Share Goodyear It has increased by more than 21% in the last 30 days. Meanwhile, Cooper’s share has risen by almost 10%.

Shareholders of Cooper Tire & Rubber Co., based in Findlay, Ohio, will acquire $ 41.75 in cash per Cooper share and approximately 0.9 shares of Goodyear common stock. Based on Friday’s Goodyear closing price, Cooper’s total shareholder consideration is $ 54.36 per share, a premium of 24% of Friday’s Cooper closing price. Cooper shares soared 17% in pre-market transactions.

The deal, approved by the boards of directors of both companies, is expected to close later this year.It’s to shareholders Goodyear About 84% of the company’s and Cooper’s shareholders make up the remaining 16%, the two companies said.

The company will be based in Goodyear House Akron,Ohio. Cooper’s current headquarters are 132 miles away in Findlay, Ohio, and the company will continue to maintain its presence.

Goodyear acquires Cooper in massive tire deal Source link Goodyear acquires Cooper in massive tire deal

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