The Goodyear Tire & Rubber Co. will acquire fellow Ohio-based tire manufacturer Cooper Tire & Rubber Co. for approximately $2.8 billion in a cash and stock transaction, the companies announced in a joint press release. Goodyear said it expects the acquisition to enhance its product offering, especially in the light truck and SUV segments, and offer an array of short-term and long-term financial benefits.
The deal—which creates a company with more than 50 factories and 72,000 employees globally—will bring the Goodyear and Cooper tire brands under one umbrella, plus others like Dunlop, Mickey Thompson, and Mastercraft. The move strengthens Goodyear’s position as one of the three largest tire manufacturers in the North American market along with Michelin and Bridgestone.
Richard Kramer, Goodyear chairman, president and CEO, called the acquisition “exciting and transformational,” adding:
“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
The deal is expected to close in the second half of 2021. The combined company will be headquartered in Akron, Ohio, but Goodyear said it expects to maintain a presence in Cooper’s home city of Findlay, Ohio.
You can read the press release in its entirety here.