Goodyear acquiring Cooper Tire in $2.5B deal

The Goodyear Tire & Rubber Co. and Cooper Tire & Rubber Co. came to an agreement under which Goodyear will acquire Cooper Tire in a deal worth about $2.5 billion.

According to Goodyear, the transaction will expand its product offering by combining two portfolios of complementary brands.

Founded in 1914, Cooper Tire is the fifth-largest tire manufacturer in North America by revenue, with about 10,000 employees working in 15 countries around the world. Cooper Tire products are manufactured in 10 facilities around the world, 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,” says Richard Kramer, Goodyear chairman, CEO and president. “The addition of Cooper’s complementary 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.”

Brad Hughes, president and CEO of Cooper Tire, also weighed in on the deal.

“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. 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.”