Apollo Tyres eyes controlling stake in Cooper Tire & Rubber Co: report

Apollo Tyres, India's largest tyre manufacturer, is planning to buy a controlling stake in US-based Cooper Tire & Rubber Company for $600 to 800 million, The Economic Times today reported, citing sources with direct knowledge of the deal.

Apollo Tyres, the world's 15th biggest tyre manufacturer, is raising $150 million through qualified institutional placement, which will give the Gurgaon, Haryana-based company enough comfort for raising additional $600 million debt for funding the acquisition, said the report

Founded in 1972, Apollo Tyres commissioned its first plant in Perambra, Kerala. It expanded in 2006 by acquiring South Africa's Dunlop Tyres International. The company now has four manufacturing units in India, two each in South Africa and Zimbabwe, and one in the Netherlands and exports to over 118 countries.

Powered by its key brands, Apollo, Dunlop and Vredestein, the company offers a wide range of tyres for passenger car, light truck, truck-bus, off highway and bicycle tyres, retreading material and retreaded tyres.

Apollo uses 1,300 tonnes of rubber daily to manufacture 30 million tyres per annum and  generates 59 per cent of its $2.5 billion revenues from India, 28 per cent from Europe and 13 per cent from Africa.

In India the company has a network of over 4,000 dealerships, of which over 2,500 are exclusive outlets. In South Africa, it has over 900 dealerships, of which 190 are Dunlop accredited dealers.