Goodyear announced they will acquire Cooper Tire & Rubber Co. for $2.5 billion. The transaction will expand Goodyear's product offering by combining two portfolios of complementary brands. It will also create a stronger U.S.-based manufacturer with 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.
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 complementary tire product portfolio and manufacturing assets, coupled with Goodyear's technology and distribution, provides the combined company with opportunities for improved cost efficiency and a broader offering for both companies' retailer networks…”