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Apollo and Cooper – is this the start of the expected wave of consolidation?

Company News, News

Is this the opening shot in the anticipated round of consolidation within the tyre industry? Or is it merely an expression of courage, or cockiness, with Indian tyre manufacturer Apollo in the role of a predator, seeking to grasp the much-larger rival Cooper as prey and in doing so exposing itself to the risk that the US$2.5 billion price will land it in debt above its head? Is attack the best form of defence or has the Indian company overreached with this ambitious and financially-edgy expansion plan?

5th July 2013/12,345 Comments/by Tyrepress Editors

Cooper acquisition is a game changer – Apollo MD talks to T&A

Company News, International News, News

With the ink still drying on Apollo Tyre’s agreement to purchase Cooper Tire and Rubber, on 27 June Tyres & Accessories met with Apollo vice chairman and managing director Neeraj Kanwar at the company's new global marketing office in central London in order to get the inside line on the deal, the impending integration and the strategy behind the purchase.

In 2010, Apollo's owners, chairman Onkar Kanwar and vice-chairman and managing director Neeraj Kanwar, told the world that the company was aiming to break into the global top 10…at least. At the time this announcement was made you could be forgiven for thinking such a proclamation was either an exercise in hyperbole or in corporate goal setting. And why not? There's nothing wrong with aiming high, as many of the world's fastest growing tyre companies are clearly doing. After all, as the saying goes, “he who aims at nothing hits it”.

But with all the speculation that surrounded the company's decision to engage in takeover talks with Cooper at the end of 2012, the fact that the deal has now been agreed arguably isn't as much of a surprise as the speed with which the top 10 goal has been attained. Early indications suggest that the amalgamated Apollo/Cooper will be the seventh largest tyre company on earth. So what’s next? The exclusive club that is dominated and fiercely defended by the big five? Or, as is more likely, a period of integration and consolidation while the dust settles?

1st July 2013/12,345 Comments/by Chris

Collmann brand enjoying renewed growth – Micro-Poise focusing more closely on retreading sector

When US publication Popular Science Monthly enthused in March 1935 over “modern scientific methods” that enable a tyre casing to be “rebuilt” instead of discarded after a working life of 20,000 miles or so, the retreading industry was still a relative newcomer on the scene. It was less than 20 years since Oliver Rubber introduced pre-cure retreading, and when the Popular Science Monthly article hit the newsstands, one aspect of retreading remained very labour intensive – buffing a tyre was still partially carried out by hand, with steel brushes used to prepare the casing for retreading. This was soon to change; in the second half of the 1930s, a German named Nanno Collmann looked into ways of simplifying this part of the retreading process, and in 1938 his company introduced the world’s first specialised tyre buffing machine. Three quarters of a century later, the Collmann brand is still a name respected by retreaders the world over and the company, under new ownership, retains a strong interest in the sector.

1st July 2013/12,345 Comments/by Tyrepress Editors

Kanwar: ‘We see significant growth potential’ at each tyre plant

Apollo Tyres joint chairman Neeraj Kanwar has spoken out in support of keeping and even expanding Apollo and Cooper’s existing manufacturing sites. With the dust still settling following the news of the acquisition of Cooper by Apollo, Kanwar’s comments, which came as part of an interview with Tyres & Accessories, appear to act as a further assurance that the company has no plans to close its manufacturing locations.

25th June 2013/12,345 Comments/by Tyrepress Editors

No Cooper production in India, says Apollo

It appears Apollo Tyres is not planning to shift any Cooper Tire production to its factories in India. The Times of India reported on 22 June that the existence of Cooper production sites in low production cost countries makes such a move unnecessary. On the other hand, the Indian tyre maker makes no secret that it will use the acquisition deal to bring its Apollo brand into new markets. And the possibility of Apollo production in Cooper factories also remains.

24th June 2013/12,345 Comments/by Tyrepress Editors

Council hopes Apollo deal will lead to Melksham investment

Melksham Town Council has welcomed Apollo Tyres’ acquisition of Cooper Tire & Rubber. Melksham north ward councillor Pam Wiltshire told local newspaper the Wiltshire Times that “obviously it’s a really good thing for the town, because there have been concerns in the past with what might happen.”

21st June 2013/12,345 Comments/by Tyrepress Editors

Apollo to distribute Cooper range in India

One result of Apollo Tyres’ acquisition of Cooper Tire & Rubber is that the US brand will be distributed in India, to both original equipment market customers and the replacement market. News regarding this was initially published by The Hindu Business Line on 19 June; the Indian financial daily wrote that the first Cooper products to arrive in Apollo’s home market would be SUV tyres, which will be supplied to “various OEMs”.

20th June 2013/12,345 Comments/by Tyrepress Editors

Battery association names new president

The Association of European Automotive and Industrial Battery Manufacturers (EUROBAT) has elected Johann-Friedrich Dempwolff, general manager and vice-president of Industry and Governmental Relations for Johnson Controls Power Solutions EMEA, as its new president. The appointment took place last week during EUROBAT meetings in Italy. Dempwolff will serve as president for two years.

18th June 2013/12,345 Comments/by Tyrepress Editors

Apollo deal an ‘overambitious move’ – LKP Securities

Shares in Cooper Tire & Rubber have fared well since news of the tyre maker’s impending acquisition was announced. When the NYSE closed on 13 June the share price stood at US$33.80, an increase of some 38 per cent on the start of the week. Future owner Apollo Tyres has not enjoyed such a positive reaction to the news, however. By midday on 14 June (Indian standard time), shares in Apollo Tyres were trading at Rs 67.75, down more than 26 per cent since the deal was made public.

14th June 2013/12,345 Comments/by Tyrepress Editors

Apollo share price falls 21% after news of Cooper deal

Shares in Apollo Tyres Ltd plunged by up to 21 per cent the day the company announced its purchase of Cooper Tire. According to local news sources, it has been over 20 years since the share price fell this much. The negative sentiment is likely to related to the price Apollo has agreed to pay for Cooper, which at $35 a share, is far higher than the company’s 11 June closing price of $24.56 and potential price tags of around $25 that were mooted around the time rumours of the deal emerged in October 2012.

13th June 2013/12,345 Comments/by Tyrepress Editors

Cooper shares up 40% following acquisition announcement

In premarket trading on 12 June, shares in Cooper Tire & Rubber Co. surged 40.3 per cent to US$34.45 per share following news of Apollo Tyres Ltd’s agreement to acquire the company for around $2.5 billion, or $35.00 a share, in cash. Shares in rival tyre maker Goodyear Tire & Rubber Co. also rose six per cent following the Apollo/Cooper deal’s announcement.

12th June 2013/12,345 Comments/by Tyrepress Editors

Titan confirms interest in Russia

Reports of Titan International’s plan to enter the Russian market have been widely reported by that country’s media, and the US tyre maker has released a statement confirming it has, in cooperation with One Equity Partners (OEP) and Russian Direct Investment Fund (RDIF), entered into negotiations with Cordiant about a potential investment in Russia. Titan says it hopes to “successfully complete these discussions in the near future.”

10th June 2013/12,345 Comments/by Tyrepress Editors

Snap-on buys Challenger Lifts

Equipment manufacturer and supplier Snap-on Incorporated has acquired Challenger Lifts for approximately US$38 million in cash. Reporting the purchase, Snap-on chairman and chief executive officer Nick Pinchuk stated “Challenger is an important addition to our Repair Systems & Information Group. The Challenger vehicle lift product line complements and increases Snap-on’s existing undercar equipment offering, broadening our established capabilities in serving vehicle repair facilities. We believe this acquisition will further Snap-on’s progress along its strategic and coherent growth runway of expanding with repair shop owners and managers. We look forward to welcoming Challenger associates to the Snap-on family.”

23rd May 2013/12,345 Comments/by Tyrepress Editors

Schaeffler terminates Conti investment agreement

On 13 May, the Schaeffler Group gave notice of its intention to terminate the mutual investment agreement it has held with Continental AG since 2008. The agreement will terminate in May 2014.

14th May 2013/12,345 Comments/by Tyrepress Editors

Signing ceremony held for Yokohama’s US plant

On 29 April 2013, Yokohama Rubber signed an agreement with the US State of Mississippi, making plans to build a truck and bus tyre plant in West Point official. Hikomitsu Noji, president and representative director of Yokohama Rubber and Mississippi Governor Phil Bryant represented the tyre maker and State at a signing ceremony held at the West Point Ritz, near the site of the future company plant. The facility will be located approximately 149 miles (240 kilometres) from state capital Jackson.

30th April 2013/12,345 Comments/by Tyrepress Editors