Goodyear Tire & Rubber Company is selling the off-road tire (OTR) business to Yokohama Rubber Company, Limited for $905 million. The deal follows a previously announced strategic review of the tire business in connection with the Goodyear Forward transformation plan.
Goodyear will retain its OTR tire supply business for the U.S. military and defense industries. In accordance with the product supply agreement to be concluded with Yokohama in connection with the closing of the transaction, Goodyear will manufacture certain OTR tires for Yokohama at some of its production sites for an initial period of up to 5 years after the closing of the transaction.
The transaction is subject to regulatory approval, other customary closing conditions and consultations and is expected to be completed by early 2025. Goodyear intends to use the proceeds from the transaction to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
Evercore acts as an exclusive financial advisor, Sullivan & Cromwell LLP is a legal advisor Goodyear.
Goodyear is one of the world's largest tire companies. The company employs about 71 thousand people, products are manufactured at 54 enterprises in 21 countries around the world. The company has 2 innovation centers in Akron, Ohio, and Colmar-Berg, Luxembourg.
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