Apollo Tyres to acquire US based Cooper for Rs 14,500 cr
Apollo Tyres Wednesday said it will acquire US-based Cooper Tire & Rubber Company in an all-cash transaction valued at approximately Rs 14,500 crore.
New Delhi: Apollo Tyres Wednesday said it will acquire US-based Cooper Tire & Rubber Company in an all-cash transaction valued at approximately Rs 14,500 crore.
The company has executed a definitive merger agreement under which a wholly-owned subsidiary of Apollo will acquire Cooper, Apollo Tyres said in a statement.
"Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive USD 35.00 per share in cash," it said.
The transaction represents a 40 percent premium to Cooper's 30-day volume-weighted average price, it added.
Commenting on the development, Apollo Tyres Chairman Onkar S Kanwar said: "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."
The combined company will be the seventh-largest tire company in the world and will have a strong presence in high growth end-markets across four continents, Apollo Tyres said.
"With a combined USD 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," it added.
"The combined company will be uniquely positioned to address large, established markets, such as the US 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," Kanwar said.
Cooper Tire & Rubber Co Chairman and President Roy Armes said the deal is a compelling transaction that is in the best interest of Cooper's stockholders and offers attractive benefits to its customers and employees.
"Together, our two organisations have almost no geographic overlap and significant opportunities for growth," he added.