Goodyear has entered into an agreement to buy Cooper Tire for approximately US$2.8 billion.
Goodyear Tire & Rubber Co. has reached an agreement to buy Cooper Tire & Rubber Co. for around US$2.8 billion (A$3.54 billion).
The two parties say that the agreement will result in cost benefits due to combining corporate functions, research and development, and other day-to-day operations.
After the deal is done, Goodyear shareholders will own around 84 per cent of the combined tyre company.
Both companies have been around for more than a century. Goodyear Tire & Rubber Co. was founded in 1898 in Akron, Ohio, and is today one of the largest tyre companies in the world, manufacturing product for cars, 4X4s, trucks, motorcycles, planes, farm equipment and earth-moving machinery.
Cooper Tire & Rubber Co. was founded in 1914, also in Akron, Ohio, and today owns other tyre brands including Mickey Thompson, Avon Tyres and Mastercraft Tires.
Both Goodyear and Cooper (and Mickey Thompson) are big players in the Australian 4X4 market. Popular Goodyear 4X4 tyres in Australia include the Wrangler Duratrac and Wrangler MT/R, while Cooper makes the S/T Maxx and STT Pro, and Mickey-Thompson makes the Baja Radial ATZ and Deegan 38.
So, how will the agreement affect Australian distribution of Cooper and Mickey Thompson tyres? “In the short-term, no impact at all, and by short-term I mean the next 12 months,” Peter Ludemann, CEO of National Tyre and Wheel (parent company of Exclusive Tyre Distributors, distributor of Cooper and Mickey Thompson here) told Unsealed 4X4.
“Once the transaction is completed, assuming it is completed, no doubt there will be some conversations between us as the Cooper distributor in Australia and the new owners of Cooper, who is our supplier, and we’ll see where that goes.”
“We have a binding long-term distribution agreement and that agreement will not be affected by the change of ownership of Cooper but obviously the new owners of Cooper will be keen to meet with us and we’d be keen to meet with them,” Ludemann added. “In terms of the sale of the brand, I’m sure everybody remains committed to servicing our customers, giving them great experiences and great products… we’ll keep doing that.”