M&A · Industrials · Tires & Inner Tubes
The Goodyear Tire & Rubber Company to acquire Cooper Tire & Rubber Co
Announced Feb 22, 2021 · Closed Jun 7, 2021
Deal value$2.50BEV $2.50B
Premium24.0%To unaffected price
EV / Adj. EBITDA6.1x1.0x EV / Revenue
ConsiderationCash and stock$41.75 per share
Transaction
- Acquirer
- The Goodyear Tire & Rubber Company
- Target
- Cooper Tire & Rubber Co (CTB)
- Buyer type
- Strategic
- Offer price per share
- $41.75
- Enterprise value
- $2.50B
- Status
- Closed Jun 7, 2021
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- $83.4M · 3.3%
- Go-shop
- No-shop
- Financing
- Committed · JPMorgan
Advisors
- To the acquirer
- Lazard, JPMorgan
- To the target
- Goldman Sachs
Sector context · Industrials
- Comparable deals
- 13 in the prior 24 months
- Premium
- 24.0% vs. 21.0% sector median
- EV / Adj. EBITDA
- 6.1x vs. 10.3x sector median
- Break fee
- Sector median 2.4%
Timeline
- AnnouncedFeb 22, 2021
- Proxy filedApr 2, 2021
- Definitive proxyApr 2, 2021
- Shareholder voteApr 30, 2021
- ClosedJun 7, 2021
Valuation · fairness opinions
Trading comparables$41.00$62.00
Discounted cash flow$48.00$62.00
Premiums paid$54.00$60.00
Offer $41.75
Implied value per Cooper Tire & Rubber Co share by analysis, from Goldman Sachs · DCF discount rate 9.25%–10.25%.