The Goodyear Tire & Rubber Company has completed its acquisition of Cooper Tire & Rubber Company, the company said in a statement, following the announcement of the acquisition in March this year.
At the initial announcement, the company stated that Goodyear will own around 84% of the combined company, and the remaining 16% equity will be held by Cooper. The combined company will be based in Akron, Ohio, while a presence in Findlay, where Cooper headquarters are located, will be maintained.
“We are excited to officially bring together Goodyear and Cooper together and unite our shared focus on customers, innovation and high quality products and solutions. This combination strengthens Goodyear’s ability to serve more customers globally, and provides increased scale to support greater investments in new mobility and fleet solutions,” said Goodyear chairman, CEO and president Richard J. Kramer.
The combining of the two brands’ portfolios will enable the combined company to leverage Goodyear’s strength in the original equipment and premium replacement tyre markets, while combining with the Cooper brand’s strength in the mid-tier light truck and SUV segments, according to the statement.
This acquisition further strengthens Goodyear’s market lead in the United States while “significantly growing” its position in the broader North American market, and will see its presence nearly doubled in China. This will at the same time create a broader distribution network for Cooper replacement tyres, which will be part of Goodyear’s network of 2,500 retail outlets worldwide.
Reiterating its initial announcement, Goodyear expects to see approximately US$165 million (RM679 million at recent exchange rates) in run-rate cost synergies within two years of this deal’s completion. A further net present value of US$450 million (RM1.85 billion) or more is expected to be generated through utilising Goodyear’s available US tax attributes, with further savings to come from manufacturing-related savings.
Opportunities for the expansion of selected Cooper facilities are expected to increase capital efficiency and flexibility, the statement said, adding that additional revenue growth opportunities are expected to result from the addition of the Cooper brand to the Goodyear global distribution network.
With the integrating of business models, organisational structures and distribution channels, Cooper’s common stock will cease to be traded on the New York Stock Exchange, the statement said.