The Goodyear Tire & Rubber Company has signed a definitive agreement to sell its Off-the-Road (OTR) tire business to The Yokohama Rubber Company for $905 million in cash. The deal follows a previously announced strategic review of the OTR tire business concerning the Goodyear Forward transformation plan.
Goodyear’s OTR tire business offers industry-leading OTR tires worldwide for surface and underground mining, construction and quarry, and port and industrial end markets. And Goodyear OTR offers a comprehensive suite of products, services, and tire management solutions that help customers optimize their operations and improve productivity and efficiency.
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 deal, 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 deal is subject to regulatory approvals, other customary closing conditions, and consultations and is expected to close by early 2025. And Goodyear plans to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
Evercore is acting as the exclusive financial advisor, and Sullivan & Cromwell LLP is acting as the legal advisor to Goodyear.
KEY QUOTES:
“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan. 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.”
– Mark Stewart, Goodyear Chief Executive Officer and President
