- Apollo Tyres acquired Cooper Tire & Rubber for $2.5 billion, the largest deal in India's automotive and tire industry.
- The acquisition was entirely debt-financed, with Apollo taking on $450 million in debt at the subsidiary level and $2.1 billion in debt between Cooper and another subsidiary.
- The combined company would become the world's seventh largest tire company with $6.6 billion in annual sales, providing Apollo access to new profitable markets while protecting from risks of a single geography.
Tata Motors in the year 2008 acquired two of the most recognized premium segment car brand - Jaguar & Land Rover for a price tag of $2.5 billion. This presentation tells you about the history of Tata Motors, Jaguar and Land Rover, details of the deal, key motives of the merger, challenges in the merger, and both the companies current stage.
This presentation tell us the types of m&a and their defence.
The information of this presentation is supported with various article theories definition and presentation
Mergers and acquisitions (abbreviated M&A) is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture.
Apollo Tyres snapped up the Findlay, Ohio-based Cooper Tire & Rubber for a staggering $2.5 billion.
It’s the largest deal in India’s automotive and tyre industry.
Tata Motors in the year 2008 acquired two of the most recognized premium segment car brand - Jaguar & Land Rover for a price tag of $2.5 billion. This presentation tells you about the history of Tata Motors, Jaguar and Land Rover, details of the deal, key motives of the merger, challenges in the merger, and both the companies current stage.
This presentation tell us the types of m&a and their defence.
The information of this presentation is supported with various article theories definition and presentation
Mergers and acquisitions (abbreviated M&A) is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture.
Apollo Tyres snapped up the Findlay, Ohio-based Cooper Tire & Rubber for a staggering $2.5 billion.
It’s the largest deal in India’s automotive and tyre industry.
The 2nd issue of the 1st volume of Magma. The issue covers Yum! Food’s exponential growth, Flicking the middle finger, Samsung Galaxy Note arrives in the USA, Tata Starbucks arrives in India. The secret of flying high, Exploiting Emotions, The first P: Product.
In this presentation there is analysis for Boeing, history, sales, supply side analysis, Commercial Aircraft Demand Determinants, Market Drivers, Order Comparison, Delivery Comparison, Current Strategy
Experience Mazda Zoom Zoom Lifestyle and Culture by Visiting and joining the Official Mazda Community at http://www.MazdaCommunity.org for additional insight into the Zoom Zoom Lifestyle and special offers for Mazda Community Members. If you live in Arizona, check out CardinaleWay Mazda's eCommerce website at http://www.Cardinale-Way-Mazda.com
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
2. NATURE OF THE INDUSTRY
Tyre Industry is highly raw-material intensive. Raw materials cost
accounts for approx. 63% of tyre industry turnover and 72% of
production cost.
The industry is a major consumer of the domestic rubber market.
Natural rubber constitutes 80% while synthetic rubber constitutes
only 20% of the material content in Indian tyres
62% of total Natural Rubber consumption is by the Tyre Sector,
balance by rubber based non-tyre industries. Interestingly, world-
wide, the proportion of natural to synthetic rubber in tyres is 30:70
Total weight of raw-materials consumed by tyre industry – 15.50
Lakh M.T.
Total Cost of Raw Materials consumed by tyre industry –
Rs.16,000 Crores
3. APOLLO TYRES – COOPER TIRE DEAL
Apollo Tyres snapped up the Findlay, Ohio-based Cooper
Tire & Rubber for a staggering $2.5 billion.
It’s the largest deal in India’s automotive and tyre industry.
The $2.5-billion tag is nearly three times what Apollo is
worth and will be paid entirely by debt, raised on Cooper’s
profitability prospects. In mergers and acquisitions (M&A)
parlance, such shopping is called leveraged buyout (LBO).
The deal involves taking debt at two levels — $450 million
on the books of Apollo’s Mauritius-based subsidiary and $2.1
billion between Cooper ($1.9 billion, from the US bond
market) and Vredestein ($200 million, an asset-backed loan).
5. BRIEF SNAPSHOT OF DEAL
Acquirers Apollo Mauritius and its Subsidiary: Dutch
Holdco and Merger Subsidiary
Seller Cooper
Acquisition Acquisition by means of merger between Cooper
and Merger Subsidiary
Acquisition Price US$ 35 per share
Total
Consideration
US$ 2.5 billion
6. MODE OF ACQUISITION
Agreement and Plan of Merger entered into between Apollo Mauritius,
Dutch Holdco, Merger Subsidiary and Cooper for the merger of the
Merger Subsidiary with and into Cooper
As a result of the Merger, the separate corporate existence of the
Merger Subsidiary shall cease Cooper will continue as the surviving
corporation post- Merger, as an indirect, wholly owned subsidiary of
Apollo
Each share of Cooper’s common stock issued and outstanding
immediately prior to the effective time of the Merger was to be
converted into the right to receive US$ 35 in cash, without interest
7. FINANCIAL CONSIDERATION
Apollo signed an agreement to acquire Cooper for a cash consideration of
US$ 2.5 billion
Deal would create the world’s seventh ranked tyre company
Synergy - Management expects potential savings of $80‐120mn which
would accrue over a period of three years
Apollo agreed to acquire Cooper for ~US$35 per share, a hefty premium of
40% on Cooper’s 30-day volume-weighted average stock price
Deal was unreasonably overpriced given the various market indicia of
Cooper and the global economic conditions
Apollo justified the deal as a combination of large market access, a well-
established brand and cost-competitive plants
8. MODE OF FUNDING
Deal was completely debt-financed
Standard Chartered sole provider of Deal- US$ 450 M. at the
Apollo Mauritius level to be serviced from the cash flows of
Apollo
US$ 450 M. to be transferred via equity to Dutch Holdco.
Morgan Stanley, Deutsche Bank, Standard Chartered Bank and
Goldman Sachs Bank USA to provide committed funding of
US$ 2.375 B. to the Merged Subsidiary consisted of a US$
1.875 B bridge facility and a US$ 500 M revolving credit
facility
The bridge loan to be refinanced by the issue of high-yield junk
bonds to the tune of US$ 1.9 billion with tenure of 7 to 8 years
and coupon in the range of 6.75% to 9.5%
Bullet repayment on the bonds of US$ 1.9 billion would be at
the end of the tenure of the bonds.
9.
10. KEY TAKEAWAYS
Combined organization will be world’s seventh largest tire
company with sales of $6.6B.
More options for customers; growth opportunities for
employees.
Apollo to retain and grow existing Cooper facilities
maintained.
Management continuity.
11. What is Cooper Tyres worth to Apollo Tyres?
Would you recommend the acquisition?
12. The deal provided significant growth opportunities to
Apollo as it would have been able to access profitable
developed markets and high-growth emerging markets with
its total addressable market increasing by three times.
The merger was seen as protection from the risk of business
in a single geography.
14. FUTURE ASPECTS OF SYNERGY
The current deal may not reap benefits as quickly and analysts fear
the first two or three years may be exceptionally tough when the
synergies won’t have kicked in but interest payments would have.
Cooper has over 14,000 employees across the world and Apollo has
no intention of retrenching staff at the American company. That
means the combined strength of Apollo-Cooper will be 30,000.
Deal increases Apollo’s capacity from 26 million to 80 million a
year.
Apollo plans to introduce its truck tyres in the US market using
Cooper’s dealership network and also sell Cooper’s passenger
vehicle tyres in the Indian replacement market.