Cooper Tire & Rubber to be Acquired by Indian Firm for $2.5 Billion
Indian tire manufacturer Apollo Tyres Ltd. said one of its subsidiaries will acquire Cooper Tire & Rubber for approximately $2.5 billion.
Under the agreement, approved by both companies board of directors, Cooper stockholders will receive $35 per share, a 40% premium to Cooper’s 30-day average stock price, according to Apollo.
The companies had a combined $6.6 billion revenue in 2012 and will be the seventh-largest tire company in the world after the acquisition, Apollo said.
The deal is expected to be completed by the end of the year and following the close Cooper common stock will no longer be traded on the New York Stock Exchange.
“The combined company will be uniquely positioned to address large, established markets, such as the United States and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth,” Onkar Kanwar, Apollo chairman said.
Cooper makes tires for heavy-duty trucks and provides tread rubber and other equipment for the retread industry.
