Two of the biggest remaining American tire companies are joining forces.
Goodyear Tire & Rubber Co. is acquiring Cooper in a deal with an equity value of $2.8 billion that will combine the two century-old Ohio manufacturers.
Cooper, founded in 1914, is the fith largest tire maker in North America based on revenue. The company has about 10,000 employees in 15 countries. In addition to the Cooper brand, it also owns Mastercraft, Roadmaster and Mickey Thompson.
For Goodyear, the bigger company, the deal will nearly double its presence in China. Cooper will get access to Goodyear’s 2,500 retail locations. The companies had combined sales of $19.5 billion in 2019. By combining, the new company would save about $165 million within two years of closing and free up cash in tax savings.
It will also bring an array of tire brands together under one roof, including Goodyear’s Dunlop and Kelly brands, and Cooper’s Mastercraft and Mickey Thompson brands.