Money Makers Mentor

Goodyear to Acquire Cooper Rubber and Tire Company

On Monday Feb. 22, The Goodyear Tire & Rubber Company (Nasdaq: GT) announced that it has agreed to acquire Cooper Tire & Rubber Company (NYSE: CTB). Both companies entered into a definitive transaction agreement. The transaction has a total enterprise value of $2.5 billion and will expand Goodyear’s product offering by merging two complementary brand portfolios. Upon completion of the deal, the newly combined company will have approximately $17.5 billion in pro forma 2019 sales.

Transaction Details

Under the transaction’s terms, Cooper shareholders will receive $41.75 per share in cash. Cooper’s shareholders will also receive a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share. This will result in a total equity value of $2.8 billion. Based on G…

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