|Bid||16.88 x 3100|
|Ask||17.00 x 1000|
|Day's Range||16.10 - 17.17|
|52 Week Range||4.09 - 17.69|
|Beta (5Y Monthly)||2.18|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jan 31, 2020|
|1y Target Est||N/A|
Rating Action: Moody's places both Goodyear Tire and Cooper Tire ratings on review for downgrade following acquisition announcementGlobal Credit Research - 23 Feb 2021New York, February 23, 2021 -- Moody's Investors Service (Moody's) placed the ratings of The Goodyear Tire & Rubber Company (Goodyear) on review for downgrade, including the B1 corporate family rating (CFR), B1-PD Probability of Default rating, senior secured second-lien term loan rating of Ba2, senior unsecured guaranteed notes rating of B2, senior unsecured unguaranteed notes rating of B3 and Goodyear Europe B.V.'s senior unsecured guaranteed notes rating of Ba3. The SGL-3 speculative grade liquidity rating is unchanged.Moody's also placed the ratings of Cooper Tire & Rubber Company (Cooper Tire) on review for downgrade, including the Ba3 CFR, Ba3-PD Probability of Default rating and senior unsecured notes rating of B1.These actions follow Goodyear's plan to acquire industry competitor Cooper Tire in a cash-and-stock transaction valued at approximately $2.8 billion.
Goodyear Tire & Rubber Co (NASDAQ: GT) is acquiring rival Cooper Tire & Rubber Co (NYSE: CTB) for $2.5 billion. Akron, Ohio-based Goodyear was founded in 1898 and employs about 62,000 people working in 46 facilities in 21 countries. Findlay, Ohio-based Cooper Tire was founded in 1914 and has a 10,000-person workforce spread across 10 manufacturing facilities in 15 countries. What Happened: The combined company will be headquartered in Akron and have approximately $17.5 billion in pro forma 2019 sales. In a statement released by the companies, the acquisition was defined as being able to “leverage the strength of Goodyear original equipment and premium replacement tires, along with the mid-tier power of the Cooper brand, which has particular strength in the light truck and SUV segments.” The combined company is also expected to have a stronger presence in the Chinese automotive market by creating a broader distribution for Cooper replacement tires. Goodyear predicted the acquisition will produce approximately $165 million in run-rate cost synergies within two years after the deal closes. Goodyear shareholders will own about 84% of the combined company, while their Cooper counterparts will own about 16%. Why It's Important: “This is an exciting and transformational day for our companies,” said Richard J. Kramer, Goodyear chairman, president and CEO. “The addition of Cooper’s complementary tire 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 for both companies’ retailer networks. Kramer continued, saying the combination will provide enhanced service for customers, while delivering shareholder value. Brad Hughes, Cooper president and CEO, added that the transaction “represents an attractive opportunity to maximize value for our shareholders, who will receive a meaningful premium as well as the opportunity to participate in the upside of the combined company.” Goodyear's stock closed up 21% at $16.82 per share, while Cooper's stock closed up 29.4% at $56.64. (Photo courtesy Goodyear) See more from BenzingaClick here for options trades from BenzingaMrBeast Holds Twitter Drawing For K In BitcoinBarack Obama, Bruce Springsteen Launch Spotify Podcast Series© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Goodyear Tire & Rubber Co. agreed to buy Cooper Tire & Rubber Co. for about $2.8 billion, strengthening its position as No. 1 in the U.S. market and almost doubling its presence in China, where auto sales are surging again.Cooper shareholders will receive $41.75 a share in cash and 0.907 shares of Goodyear, or about $54.36 a share in total, according to a statement Monday. That’s 24% above Cooper’s closing price as of Feb. 19.Goodyear shareholders will own about 84% of the combined tire maker. The companies anticipate savings of about $165 million over two years from the merger.The initial cost benefits will come from combining corporate functions, research and development and procurement, the tire maker said. And while no manufacturing jobs or plants are being eliminated initially, the companies said they see opportunities to leverage their combined production system.“As we develop business plans, we’ll start to take a look at what opportunities, including revenue growth and including how to better leverage the combined manufacturing footprint, we might be able to get,” Richard J. Kramer, Goodyear’s chairman and chief executive officer, said on a call with analysts Monday. “We definitely feel like those opportunities are going to be there.”Goodyear Tire’s purchase is a win for both companies, KeyBanc analyst James Picariello wrote in a note. Picariello said the deal “represents the rare instance of a clear, great deal for both parties.”With Cooper, founded in 1914, Goodyear gains the fifth-largest tire manufacturer in North America by revenue, with about 10,000 employees worldwide. In China, Akron, Ohio-based Goodyear will gain better access to local manufacturers and create broader distribution for Cooper replacement tires.The tire industry is recovering from the pandemic slump. Last week French tire maker Michelin predicted business will return to pre-pandemic levels in the second half of 2022, with Chief Executive Officer Florent Menegaux saying the company needs to rebuild inventories after demand snapped back more strongly than expected late last year.Cooper shares jumped 24% to $54.31 at 9:47 a.m in New York. Goodyear’s stock rose 7.5%.The deal, which must meet certain regulatory requirements and must be approved by Cooper shareholders, is expected to close in the second half of 2021, the companies said in the joint press release.Lazard Ltd. advised Goodyear along with JPMorgan Chase & Co. while Goldman Sachs Group Inc. advised Cooper. (Updates with advisers in last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.