Cooper Tire & Rubber Company has announced that its stockholders have approved its pending merger with a wholly-owned subsidiary of Apollo Tyres Ltd. The merger on completion will result in a strategic business combination that creates the seventh-largest tire company in the world. Cooper and Apollo announced the proposed merger on June 12, 2013 following unanimous approval by the boards of directors of both companies. The pending merger is expected to close by the end of this year.
The two companies have highly complementary brands, geographic presence, and technological expertise to create a global leader in tire manufacturing and distribution. Apollo, founded in 1972, has an international reputation for high performance tires across a portfolio of well-known premium and mid-tier brands, including the flagship Apollo brand and Vredestein. Cooper, the 11th-largest tire company in the world by revenue, was founded in 1914 and today supplies premium and mid-tier tires worldwide through renowned brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon.
The combined company will have a strong presence in high-growth end-markets across four continents. With a combined $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.
The combination is expected to deliver value creation benefits of approximately $80-120 million per annum at the EBITDA level. These on-going benefits are expected to be fully achieved after three years and derived from operating scale, sourcing benefits, technology, product optimization, and manufacturing improvements.