Goodyear Tire acquiring Cooper in nearly $3B deal

Goodyear Tire & Rubber Co. is acquiring Cooper in a deal with an equity value of $2.8 billion that will combine the two century-old Ohio manufacturers.

Cooper, founded in 1914, is the fifthlargest tire maker in North America based on revenue. The company has about 10,000 employees in 15 countries.

For Goodyear, the deal will nearly double its presence in China. Findlay, Ohio-based Cooper will get access to Akron, Ohio-based Goodyear’s 2,500 retail locations. The companies had combined sales of $19.5 billion in 2019. By combining, the new company would save about $165 million within two years of closing and free up cash in tax savings.

Shareholders of Cooper Tire & Rubber Co. will get $41.75 in cash and about

0.9 share of Goodyear common stock per share of Cooper stock. Based on Goodyear’s closing price on Friday, the total consideration for Cooper shareholders is $54.36 per share, a 24 percent premium to Cooper’s closing price on Friday.

The deal, approved by the boards of both companies, is expected to close in the second half of this year.