Akron, Ohio – The Goodyear Tire & Rubber Co. has completed its $2.5 billion (€2.1 billion) acquisition of Cooper Tire & Rubber Co. which was originally announced 22 Feb.
The cash-and-stock purchase combines “complementary product portfolios, services and capabilities to create a stronger US-based leader in the global tire industry,” said Goodyear in a statement 7 June.
"We are excited to officially bring Goodyear and Cooper together and unite our shared focus on customers, innovation and high-quality products and solutions,” said Richard Kramer, Goodyear chairman, CEO and president.
The merger, he said, strengthens Goodyear's “leading position” in the US while “significantly growing its position in other North American markets.”
Furthermore, the move nearly doubles Goodyear's presence in China and increases the number of relationships with local automakers.
The combination of the two brand portfolios, according to Kramer, will lead to a “comprehensive offering across the value spectrum.”
This means that the company will leverage Goodyear's original equipment and premium replacement tires, along with mid-tier Cooper tires, which are particularly strong in the light truck and SUV segments.
In financial terms, Kramer said the merger provided “significant, immediate and long-term benefits”.
Goodyear expects to achieve approximately $165 million in run-rate cost synergies within two years.
The majority of the cost synergies will be related to overlapping corporate functions and realising operating efficiencies, according to Kramer.
In addition, the merger is expected to generate net present value of $450 million or more by utilising Goodyear's available US tax attributes.
Goodyear also said that it expected to enhance capital efficiency and flexibility through the expansion of select Cooper facilities, but did not provide further details.
Post-acquisition, Goodyear said it aimed to increase its efforts in new mobility and fleet solutions and broaden its relationship with tradition and emerging OE manufacturers.