Apollo Tyres to acquire Cooper Tire & Rubber Company

Apollo Tyres Ltd and Cooper Tire & Rubber Company announced the execution of a definitive merger agreement under which a wholly-owned subsidiary of Apollo will acquire Cooper in an all-cash transaction valued at approximately $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 $35 per share in cash. The transaction represents a 40 per cent premium to Cooper's 30-day volume-weighted average price.

This strategic combination will bring together two companies with highly complementary brands, geographic presence, and technological expertise to create a global leader in tire manufacturing and distribution. Apollo, founded in 1972, has an international reputation for high performance tires across a portfolio of well-known premium and mid-tier brands, including the flagship Apollo brand and Vredestein. Cooper, the 11th-largest tire company in the world by revenue, was founded in 1914 and today supplies premium and mid-tier tyres worldwide through renowned brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon.

The combined company will be the seventh-largest tyre company in the world and will have a strong presence in high-growth end-markets across four continents. With a combined $6.6-billion in total sales in 2012, the combined company will have a full range of brands and greater ability to satisfy customer needs 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 tire 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 of Apollo.

"This is a compelling transaction that is in the best interest of Cooper's stockholders and offers attractive benefits to our customers and employees. We have watched Apollo's successful transformation into a major global tyre group, and have a great deal of respect for the company and its leadership. Together, our two organisations have almost no geographic overlap and significant opportunities for growth. We share a commitment to innovation, quality, and customer service, as well as to the core values of safety, environmental sustainability, the development of our people and giving back to our communities. We look forward to working together to drive continued growth in a dynamic global tire business where increased scale and expanded manufacturing footprint help to ensure long-term success," said Roy Armes, Cooper's Chairman, Chief Executive Officer and President.

Posted in: Accessories,Apollo Tyres Ltd.,Asia Pacific,Cooper Tire and Rubber Company,India,International,North America,Onkar S. Kanwar,Roy Armes,United States