Apollo Tyres Ltd and Cooper Tire & Rubber Company announced Wednesday morning in a press release that the companies have reached a merger agreement, creating the world's seventh-largest tire company.
The release states that Apollo will acquire Cooper in an all-cash transaction valued at approximately $2.5 billion.
Under the terms of the agreement, which have been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive $35.00 per share in cash.
Officials say the combined company will be have a strong presence in high-growth end-markets across four continents, with a combined $6.6 billion in total sales in 2012.
Neeraj Kanwar, Vice Chairman and Managing Director of Apollo, said, "The combined company's diversified product offering will serve the passenger car, light and heavy truck, farm, and off-the-road vehicle segments. Our extended global reach will create opportunities to provide our customers and distributors around the world with increased access to the quality tires they have come to expect from each of our respective brands."
Roy Armes, Cooper's Chairman, Chief Executive Officer and President, said, "This is a compelling transaction that is in the best interest of Cooper's stockholders and offers attractive benefits to our customers and employees. We have watched Apollo's successful transformation into a major global tire group, and have a great deal of respect for the company and its leadership. Together, our two organizations have almost no geographic overlap and significant opportunities for growth."
Cooper Tire is based in Findlay, Ohio.
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