Goodyear Sells Off-the-Road Tire Arm to Yokohama Rubber

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The Goodyear Tire & Rubber Company (NASDAQ: GT) said today that it has signed a definitive agreement* to sell its Off-the-Road (OTR) tire business to The Yokohama Rubber Company, Limited (TYO: 5101) for $905 million in cash. The OTR tire business tires globally for surface and underground mining, construction and quarry, as well as  port and industrial end markets.

“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan,” said Mark Stewart, Goodyear Chief Executive Officer and President. “We are grateful to our OTR colleagues who have driven the success of the business and are committed to working closely with Yokohama to ensure a smooth transition for customers and associates.”

Goodyear will retain its business providing OTR tires for U.S. military and defense applications. Pursuant to a Product Supply Agreement to be entered into with Yokohama in connection with the closing of the transaction, Goodyear will manufacture certain OTR tires for Yokohama at some of its manufacturing locations for an initial period of up to five years after the closing of the transaction.

*The transaction is subject to regulatory approvals, other customary closing conditions and consultations and is expected to close by early 2025. Goodyear said it intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan. The Goodyear Tire & Rubber Company will report Q2 2024 financial results after market close on Wednesday 31 July.

Evercore is the exclusive financial advisor and Sullivan & Cromwell LLP is acting as legal advisor to Goodyear.