RTTNews | Feb 22, 2021 10:00AM EST

10:00 Monday, February 22, 2021 (RTTNews.com) - Shares of Cooper Tire & Rubber Company (CTB) are rising more than 27% Monday morning on the news of it getting acquired by Goodyear Tire & Rubber Company (GT).

As per the deal, Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of about $2.8 billion.

Based on the closing price of Goodyear on February 19, the implied cash and stock consideration to be received by Cooper shareholders is $54.36 per share, a premium of 24% to Cooper's closing stock price on February 19.

"The transaction will expand Goodyear's product offering by combining two portfolios of complementary brands. It will also create a stronger U.S.-based manufacturer with increased presence in distribution and retail channels while combining both companies' strengths in the highly profitable light truck and SUV product segments. The combined company will have approximately $17.5 billion in pro forma 2019 sales," Cooper Tire and Goodyear said.

Cooper Tire & Rubber Company today reported fourth quarter results. Earnings for the fourth quarter declined to $38 million, or $0.75 per share from $51.26 million or $1.02 per share in the same quarter a year ago.

Net sales for the quarter decreased 2.9% year-on-year to $728 million.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.92 per share on revenue of $732.68 million.

CTB touched a new high of $55.66 this morning.

Read the original article on RTTNews ( https://www.rttnews.com/3171600/stock-alert-cooper-tire-rubber-jumps-27-on-acquisition-news.aspx)

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com All Rights Reserved