Goodyear enters agreement to purchase Cooper Tire
AKRON, Ohio (WTVG) - Goodyear Tire and Rubber Company has announced its entered into a transaction agreement to purchase Cooper Tire for $2.5 billion.
Findlay-based Cooper is the fifth-largest tire manufacturer in North America by revenue with approximately 10,000 employees working in 15 countries worldwide. The company’s portfolio of brands includes Cooper, Mastercraft, Roadmaster, and Mickey Thompson.
The transaction has been approved by the Boards of Directors of both companies. The transaction is expected to close in the second half of 2021.
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 19, 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% to Cooper’s closing stock price on February 19 and a premium of 36% to Cooper’s 30-day volume-weighted average price as of the close on February 19.
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