Apollo Tyres Ltd. acquires Cooper Tire & Rubber Company
Onkar Kanwar, chairman and Neeraj Kanwar, vice chairman & MD of Apollo Tyres
Apollo Tyres Ltd and Cooper Tire & Rubber Company have come to a merger agreement under which a wholly-owned subsidiary of Apollo will acquire Cooper in an all-cash transaction valued at approximately INR 14,500 crores (USD 2.5 billion). Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive INR 2026 per share in cash. The transaction represents a 40 per cent premium to Cooper's 30-day volume-weighted average price.
The collaboration will bring together two companies with complementary brands, geographic presence, and technological expertise to create the seventh-largest tyre company in the world. Apollo, founded in 1972, has an international portfolio of premium and mid-tier brands, including the flagship Apollo brand and Vredestein. Cooper, the 11th-largest tyre company in the world by revenue, was founded in 1914 and today supplies premium and mid-tier tyres worldwide through brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon.
The newly formed company will have a presence in high-growth markets across four continents and a full range of brands to cater to customers worldwide.
"This transformational transaction provides an unprecedented opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world. Cooper is one of the most respected names in the tyre industry, with an extensive distribution network and manufacturing infrastructure, and a particularly robust presence in North America and China. The combined company will be uniquely positioned to address large, established markets, such as the United States and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth. Our combined portfolio of brands and products will be amongst the most comprehensive in the industry," said Onkar S Kanwar, Chairman, Apollo Tyres Ltd.
