Indian Tire Maker to Buy Cooper Tire
June 13, 2013—One of India’s largest tire makers, Apollo Tyres, on Wednesday announced the acquisition of Cooper Tire and Rubber Company for $2.5 billion in cash.
The combined company will become the seventh-largest tire company in the world, with combined total sales of $6.6 billion in 2012.
According to Thomson Reuters data, this would be the second-biggest acquisition of an American company by a buyer in India.
Apollo Tyres expects the acquisition will boost its exposure to the U.S. market, the second-largest auto market after China.
Cooper is currently the fourth-largest tire maker in North America, with brands including Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon.
Apollo said Cooper’s management would continue to run the business and there were no plans to cut production in the U.S.
Under the terms of the agreement, Cooper stockholders would receive $35 per share in cash, a 40 percent premium to Cooper’s 30-day volume-weighted average price.
The deal is expected to be completed this year.