Goodyear Acquires Cooper Tire in Massive Cash and Stock Deal
The famous brand Goodyear Tire and Rubber Co. has announced they’re acquiring Ohio-based tire manufacturer Cooper Tire and Rubber Co. for $2.8 billion in cash and stocks. The companies announced the deal in a press release, and Goodyear mentioned that it expects to enhance its product offering in the light truck and SUV segments. The acquisition will offer various short-term and long-term financial benefits.
The deal will bring the Goodyear and Cooper tire brands under a single umbrella, which includes Mickey Thompson, Dunlop, and Mastercraft. It creates a company with 72,000 employees and more than 50 factories globally. The move is designed to strengthen Goodyear’s position as one of the most significant tire manufacturers in North America, alongside Michelin and Bridgestone.
Goodyears chairman, president, and CEO, Richard Kramer, describes the acquisition as transformational and exciting. He added:
“The addition of Cooper’s complementary 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 are confident this combination will enable us to provide enhanced service for our customers and consumers, while delivering value for shareholders.”
Richard Kramer, Chairman, President & CEO, Goodyear
Goodyear expects the deal to be finalized by the second half of 2021. The combined company is headquartered in Akron, Ohio, but the company expects to maintain a presence in Cooper’s home city in Findlay, Ohio.