(Bloomberg) -- Goodyear Tire & Rubber Co. agreed to buy Cooper Tire & Rubber Co. for about $2.8 billion to strengthen its offering and expand its distribution channels.

Cooper shareholders will receive $41.75 a share in cash and 0.907 shares of Akron, Ohio-based Goodyear, or about $54.36 a share in total, according to a statement Monday. That’s 24% above Cooper’s closing price as of Feb. 19.

Cooper, founded in 1914, is the fifth largest tire manufacturer in North America by revenue, with about 10,000 employees worldwide. Goodyear shareholders will own about 84% of the combined tire company.

The tire industry is recovering from the pandemic slump. Last week French tire maker Michelin predicted business will return to pre-pandemic levels in the second half of 2022, with CEO Florent Menegaux saying the company needs to rebuild inventories after demand snapped back more strongly than expected late last year.

Cooper shares jumped 13% to $49.50 in early U.S. trading. Goodyear’s stock declined 4.6%.

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