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Goodyear To Acquire Cooper Tire, Greatly Expanding Brand’s Reach

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The Goodyear Tire & Rubber Company announced today that it has entered a definitive transaction agreement under which Goodyear will acquire Cooper in a transaction with a total enterprise value of approximately $2.5 billion. The combined company will have approximately $17.5 billion in pro forma 2019 sales.

For the two tire-makers, this move strengthens the product line of both by combining two portfolios of complementary brands. 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 highly profitable light truck and SUV product segments.

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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.

Based on Goodyear’s closing stock price on February 19th, 2021, the last trading day prior to the announcement, the implied cash and stock consideration to be received by Cooper shareholders is $54.36 per share, representing a premium of 24 percent to Cooper’s closing stock price and a premium of 36 percent to Cooper’s 30-day volume-weighted average price. Upon closing of the transaction, Goodyear shareholders will own approximately 84 percent of the combined company, and Cooper shareholders will own approximately 16 percent.

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Founded in 1914, Cooper is the 5th-largest tire manufacturer in North America by revenue with approximately 10,000 employees working in 15 countries worldwide. Cooper products are manufactured in 10 facilities around the globe, including wholly-owned and joint venture plants. The company’s portfolio of brands includes Cooper, Mastercraft, Roadmaster, and Mickey Thompson.

“This is an exciting and transformational day for our companies,” said Richard J. Kramer, Goodyear chairman, chief executive officer, and president. “The addition of Cooper’s complimentary 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.”

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“We have a great deal of respect for Cooper’s team and share a commitment to integrity, quality, agility, and teamwork. We look forward to welcoming Cooper to the Goodyear family.”

“Cooper has transformed into a dynamic, consumer-driven organization that has balanced traditional and emerging channels to increase demand for our products while updating and effectively leveraging our global manufacturing footprint,” said Brad Hughes, Cooper president & chief executive officer. “I am extremely proud of what our team has accomplished over the past 107 years and am grateful to our talented employees for their contributions and commitment.”

“This transaction marks the start of a new chapter for Cooper, which we are entering from a position of strength. We believe that it represents an attractive opportunity to maximize value for our shareholders, who will receive a meaningful premium as well as the opportunity to participate in the upside of the combined company. We look forward to the opportunity to combine Cooper’s considerable talents with Goodyear’s, and to be part of a bigger, stronger organization that will be competitively well-positioned to win in the global tire industry.”

We’ll have more on industry shakeups like this soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

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Written by Brett Foote

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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12 Comments

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  1. My first instinct is to tell G-Y to keep their grubby paws off. I love Cooper tires. They last a long time and are reasonably priced. I really don’t want G-Y to muck that up.

  2. JimL,

    Of course the company will muck it up…why else would they be acquiring it unless they “think they can do it better?” And, aren’t electrics really better? So says Alexandria…so says Biden…and so says you. Your money is now paying for Elon Musk to get super unbelievably rich. Who says change isn’t for the better?

  3. I love Cooper Tires. I have been using Cooper CS5 Ultra Touring tires on my ’65 G.T. 350 for several years. I replaced a set of Avons on the G.T. 350 and I couldn’t be happier! I have been looking to put the CS5s on my ’66 Shelbys, but it appears that Cooper has discontinued the CS5 in 15″. So, unless Goodyear decides to bring back Cooper’s 15″ performance tire, this acquisition is a non-event as far as I am concerned.

    • Thank you Materialman.
      I couldn’t agree more.
      And the Cooper tires I just put on my Jeep are made in the US. I couldn’t get that guarantee from the GY shop.

      • The GoodYear Wrangler TrailRunner A/Ts I recently had put on my ’74 Chevy C10 are made in USA. I can’t speak to other sizes, I was just happy I could find new tires in my size that weren’t some terrible GreatHappyTire or similar crap.

        (Yes, I put all terrain tires on a 2wd truck, and couldn’t be happier. )

      • I just realized, the Cooper Zeon performance tires that the previous owner put on my SVT Focus are made in China.

        They’re going to be replaced with Pirelli tires. Not because of their place of manufacture, simply because I’m not happy with their performance.

  4. Goodyear is probably purchasing Cooper for all the reasons mentioned above, including eliminating competition from the marketplace.

  5. They are good tires at affordable prices. Goodyear will probably open a plant in Mexico to keep them low cost. The question is…as always, QUALITY.

    • In addition to Cooper’s plant in El Salto, Mexico? Cooper also has at least one plant in China, too.

      Maybe some research before you stick your foot in it.

  6. When a good company sells out to a competitor, it’s the own(s) want become billionaires or a financial reason. If copper was making a ton of profits why would the board agree to the sell? My take on it is profits were probably dropping, plants are becoming old and inefficient, labor cost increasing and it would take millions of dollars to invest in new equipment and facilities to remain competitive.
    On new vehicles I’ve never seen Cooper OEM tires. Alway Goodyear, Michelin, or Bridgestone. It’s a market of 17 million vehicles a year. Either Cooper couldn’t get into it or didn’t want it. For sure with this merger of sorts there will be layoffs.

  7. I’ve never liked any of the Goodyear tires that I have tried. We are on our 2nd of Coopers., absolutely love them. I’m sure Goodyear will screw them up.

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