Grouping With Cooper Makes it a Goodyear

This transaction takes tire-kicking to another new level. Yesterday Goodyear Tire & Rubber, the largest tire manufacturer in the United States, announced a $2.8 billion deal to acquire the number two player, Cooper Tire & Rubber. Tired Out in 2020,…

Jennifer
Grouping With Cooper Makes it a Goodyear
Sign up for insightful business news.

This transaction takes tire-kicking to another new level.

Yesterday Goodyear Tire & Rubber, the largest tire manufacturer in the United States, announced a $2.8 billion deal to acquire the number two player, Cooper Tire & Rubber.

Tired Out in 2020, Accelerating Ahead

The global tire industry was stuck in place for much of 2020 as the COVID-19 pandemic slashed demand for replacement tires.

But with the Covid-19 vaccine rollout in full force — and the backdrop of record-low interest rates — industry observers anticipate a rebound for auto products and services.

Street Smarts: Goodyear CEO Richard Kramer told investors the proposed deal would lift the combined company’s sales volumes of replacement tires to 64 million in the U.S.

  • Cooper’s replacement tires will now have access to Goodyear’s network of 2,500 retail stores.
  • The deal will also boost Goodyear’s strength in the lucrative light truck and SUV segments and expand its footprints in North America and China, nearly doubling it in the latter.
the takeaway

Goodyear hopes to unearth $165 million in cost synergies within two years from the metaphorical seat cushions.

Analysis more
(Photo Credit: Towfiqu Barbhuiya/Unsplash)

Private Practice: A Q&A with Pierre Valade, Founder of Privacy App Jumbo

(Photo Credit: Nate DeWaele/Unsplash)

The Brontosaurus Bubble: Could the bottom fall out of the dinosaur fossil market?

Recent News

Private Practice: A Q&A with Pierre Valade, Founder of Privacy App Jumbo

Subways Sales Climb for First Time in Years as the Company Looks to Expand in Foreign Markets

Florida Tops New York New Jobs Report

Sony Bids Farewell to PlayStation Supply Chain Woes