After announcing the merger agreement made public back in February, Goodyear Tire and Rubber Company has declared that that it has completed its acquisition of Cooper Tire and Rubber Company.
In a statement, Goodyear claimed that the union of the two tire companies that have complementary product portfolios, services and capabilities are set to “create a stronger US-based leader in the global tire industry.”
It declared, “The combined company will offer more options across the value spectrum making it easier for customers and consumers to choose Goodyear- and Cooper-branded tires.”
Goodyear Chairman, Chief Executive Officer, and President Richard Kramer expressed enthusiasm over the latest endeavor.
“We are excited to officially bring 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 consumers globally and provides increased scale to support greater investments in new mobility and fleet solutions,” Kramer was quoted as saying.
The acquisition further strengthens Goodyear’s position in the US, “while significantly growing its position” in other North American areas. In China, Goodyear’s presence nearly doubled due to the acquisition and increases the number of relationships with local automakers. For Cooper, it has created a broader distribution for the replacement tires through the network of 2,500 branded retail stores there.
Further, the joined company can leverage the strength of Goodyear original equipment and premium replacement tires, along with the mid-tier power of the Cooper brand, which has a particular strength in the light truck and SUV segments.
Moreover, the merger is also seen to yield significant, immediate and long-term financial benefits through cost synergies and tax benefits as well as earnings.
Furthermore, opportunities for expansion of select Cooper facilities are “expected to increase capital efficiency and flexibility.” “Additional revenue growth opportunities are expected to result from the addition of the Cooper brand to Goodyear’s global distribution network,” the statement shared.
Lastly, the combined company — being an industry leader in the US — will offer tire products and a broad selection of services through Goodyear’s relationships with traditional and emerging original equipment manufacturers, autonomous driving system developers, new and established fleet operators, and other mobility platforms.
“With complementary business models, organizational structures and distribution channels, Goodyear will integrate the best of Goodyear and Cooper in order to benefit its shareholders, customers, consumers and employees,” Goodyear explained.
“As a result of the closing, Cooper’s common stock will cease to be traded on the New York Stock Exchange,” it noted.
Photos from Goodyear Philippines, Goodyear Philippines Facebook page