Goodyear has announced its intentions to acquire the Cooper brand. In a total enterprise value of approximately USD2.5 billion (RM10.1 billion), Goodyear will add a prominent brand to its already expanded tyre line-up. Once the deal is completed, Goodyear owns approximately 84% of the combined company, and Cooper owns approximately 16%.
With this merger, Goodyear has increased presence in distribution and retail channels while combining both brands’ strengths in the highly profitable light truck and SUV product segments. The combined company assumes approximately USD17.5 billion (RM70.7 billion) in pro forma 2019 sales.
Founded in 1914, Cooper is the 5th-largest tyre manufacturer in the U.S.A. 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.
The Goodyear acquisition marks the start of a new chapter for the Cooper brand. The brands will focus on the key pillars moving forward:
- Strengthens Leadership Position in Global Tyre Industry
- Combines Two Complementary Brand Portfolios with a Comprehensive Offering Across the Value Spectrum
- Provides Significant, Immediate and Long-Term Financial Benefits
- Opportunity to Create Additional Value from Manufacturing and Distribution
- Increases Scale to Support Investments in New Mobility and Fleet Solutions
Lastly, the brands will observe complementary business models, organizational structures and distribution channels, via a successful integration.
The headquarters shall be Goodyear’s home base in Akron, Ohio, as well as Findlay, Ohio.