Apollo Tyres says it will acquire Cooper Tire & Rubber company in an all-cash deal worth US$2.5bn, with both businesses having joint sales of US$6.6bn.
The combined operation will be the seventh-largest tyre company in the world with Apollo Tyres saying it will have a presence in high-growth markets across four continents.
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Both companies are expected to deliver what Apollo describes as “value creation benefits” of around US$80m – US$120m per year at EBITDA level, with these fully achieved after three years.
“This transformational transaction provides an opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world,” said Apollo chairman, Onkar Kanwar.
“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.
