Page 4 - RB97

NEWS
Goodyear Acquire Cooper Tire
KRAIBURG Austria Ends 2020 on Par
The Goodyear Tire & Rubber Company have announced that they have entered a definitive transaction agreement to acquire Cooper for a sum in the region of USD 2.5 billion. The transaction will allow Goodyear to offer two portfolios of complementary brands as well as create a stronger U.S.-based
for both companies’ retailer networks. We are confident this combination will enable us to provide enhanced service for our customers and consumers while delivering value for shareholders.”
Brad Hughes, Cooper president & chief executive officer, added, “Cooper has transformed into a
KRAIBURG Austria is reporting satisfactory results for 2020, with sales and turnover on a level with the previous year. In view of the exceptional global situation caused by the Coronavirus pandemic, the company sees this result as a considerable success.
Many factors are claimed to have contributed to the positive result, including a widespread roll-on campaign, which disper¬sed initial uncertainties regarding potential deliver y chain bottlenecks, as well as the timely introduction of integrated hygiene measures at the Geretsberg site in March, thereby allowing production to be maintained continuously whilst also guaranteeing the highest safety
standards for all
employees. Parallel
to this, the
company created
home office and
smart working
capacities and
asserted itself
constantly as a
reliable partner for
customers with
adequate services.
The team
responded quickly
and individually to
different needs and require-ments as
well as in close
cooperation with
the retreaders. The
extremely strong
summer months
and the continuing good autumn business ultimately contributed to the positive total result.
Despite the continuing pandemic, KRAIBURG Austria looks confidently at the current business year. "Demand in the first quarter is on the expected level so far," explained Sales Manager Holger Düx. "How¬ever, in view of the extremely dynamic development of the pandemic at the moment, it is almost impossible to make reliable forecasts for the market progression in 2021. We can only observe tendencies." Despite the positive outlook, KRAIBURG points out that the cur¬rent cost development represents a great challenge, on
the one hand because transport costs have increased approximately sixfold in the last five months due to artificial scarcity of volume and lack of container returns from Europe, but also because the raw material prices for natural and synthetic rubber as well as for carbon black have been rising continu¬ously for months. "Since no changes are in sight in the short term, we have no choice but to increase our prices as of the 1st of April," Düx clarified. "This will be between 15 and 20 cents per kilogram depending on the product group." Most premium new tyre manufacturers already adapted their prices throughout Europe by two to three per cent
Holger Düx
manufacturer with increased presence in distribution and retail channels while combining both companies’ strengths in the highly profitable light truck and SUV product segments. The combined company had approximately $17.5 billion in pro forma sales in 2019.
Under the terms of the transaction, which has been approved by the Boards of Directors of both companies, Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of approximately $2.8 billion. Upon closing of the transaction, Goodyear shareholders will own approximately 84% of the combined company, and Cooper shareholders will own approximately 16%.
“This is an exciting and transformational day for our companies,” said Richard J. Kramer, Goodyear chairman, chief executive officer and president. “The addition of Cooper’s complementary tyre product portfolio and highly capable manufacturing assets, coupled with Goodyear’s technology and industry leading distribution, provides the combined company with opportunities for improved cost efficiency and a broader offering
dynamic, consumer-driven organisation that has balanced traditional and emerging channels to increase demand for our products, while updating and effectively leveraging our global manufacturing footprint. I am extremely proud of what our team has accomplished over the past 107 years and am grateful to our talented employees for their contributions and commitment. This transaction marks the start of a new chapter for Cooper, which we are entering from a position of strength. We believe that it represents an attractive opportunity to maximise value for our shareholders, who will receive a meaningful premium as well as the opportunity to participate in the upside of the combined company. We look forward to the opportunity to combine Cooper’s considerable talents with Goodyear’s, and to be part of a bigger, stronger organisation that will be competitively well-positioned to win in the global tyre industr y.” The transaction is subject to the satisfaction of customar y closing conditions, including receipt of required regulator y approvals and the approval of Cooper shareholders. The transaction is expected to close in the second half of 2021.
at the beginning of March. "The increases at the Asian manufacturers will probably be even more drastic to partly compensate for the increased transport costs," added Managing Director Stefan Mayrhofer. "Consequently, competitive products from the Far East which sell, above all, by price, could lose a lot in attraction. In addition, the Asian manufacturers, just like the established European manufacturers, are still battling with structural deliver y bottlenecks."
4 Retreading Business