Goodyear, Cooper $2.8B deal creates U.S. tire leader Two of America's biggest tire companies are tying up; Goodyear Tire & Rubber Co. and Cooper in a deal valued at $2.8 billion. “The addition of Cooper’s complementary tire product portfolio and highly capable manufacturing assets, coupled with Goodyear’s technology and industry leading distribution, provides the combined company with opportunities for improved cost efficiency and a broader offering for both companies’ retailer networks. We are confident this combination will enable us to provide enhanced service for our customers and consumers while delivering value for shareholders" said Richard J. Kramer, Goodyear chairman, chief executive officer and president, in the deal's announcement. Cooper, founded in 1914, is the 5th 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. The company will be based in Goodyear's home of Akron, Ohio. Cooper's current headquarters is 132 miles away in Findlay, Ohio, where the company will continue to maintain a presence.
I wonder what that does to Cooper's interest in Kumho? Also, how does Cooper get access to more retail locations? Cooper will cease to exist. Sad to hear this. Goodyear can't mess up their own company enough so they buy another.
Goodyear dropped all the 14” and 15” tires. So hopefully they are getting Cooper to keep going with their line of tires. but usually these things get all screwed up.
Just means that you will see the Cooper brand being sold at Goodyear company store locations. Some people will see that as a plus.
Another combination that will mean higher costs for customers and job layoffs. But hey, the shareholders will get richer.
Let the downsizing begin! Sales, Purchasing, and any other overlap will be cut. Sunshine up the ass from the CEO, seen it to many times in corporate America. Unfortunately, many hard working Americans will lose their jobs. 440'
Interesting! Looks like the tires are going downhill so maybe we can put our collective ingenuity together here and create some type of gel or coating that would magically keep our tires in a constant state of Brand Spanking Knew......never need to buy tires again......hhmmmmm. Any ideas????
