On Wednesday, Apollo Tyres announced that it would acquired Cooper Tire and Rubber (CTB), making the India-based manufacturer one of the largest tire makers in the world.
Apollo will pay 42% premium to purchase the outstanding shares of Cooper, which is based in Ohio. Not surprisingly, Coopers shares soared more than 40% on the news.
The merger is valued at $2.22 billion. It is expected to be completed later this year, provided it get regulatory clearance. Once it adds Cooper’s business to its own, Apollo will have about $6.6 billion in annual sales, the Associated Press notes.
Cooper’s board has recommended the deal to shareholders. Apollo indicated that it will maintain Cooper’s current worldwide operational infrastructure and management team. Cooper produces a number of tire brands, including Cooper, Mastercraft, Dean, Starfire and Roadmaster.