fbpx
Big Law

Goodyear Tire Acquires Cooper Tire for $2.8B

The Goodyear Tire & Rubber Company will acquire the Cooper Tire & Rubber Company in a transaction with a total enterprise value of approximately $2.5 billion.

The transaction will expand Goodyear’s product offering by combining two portfolios of complementary brands, Goodyear says, adding it will also create a stronger U.S.-based manufacturer with an increased presence in distribution and retail channels while combining both companies’ strengths in the light truck and SUV product segments.

The combined company will have approximately $17.5 billion in pro forma 2019 sales. Under the terms of the transaction, which has been approved by the boards of directors of both companies, Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of approximately $2.8 billion. Upon closing of the transaction, Goodyear shareholders will own approximately 84% of the combined company, and Cooper shareholders will own approximately 16%.

Read the source article at Home Page

Leave a Review or Comment

Back to top button