Gemspring Capital to Acquire Goodyear Chemical

Rhea-AI Summary

Gemspring Capital Management has entered into a definitive agreement to acquire Goodyear's (NASDAQ: GT) polymer chemicals business. The acquisition includes two operating plants in Texas (Houston and Beaumont) and an R&D facility in Akron, Ohio. Goodyear Chemical, headquartered in Akron, is a leading North American synthetic rubber producer serving major tire manufacturers and various end markets including food, medical, sporting goods, and industrial applications.

Goodyear will retain its Chemical facilities in Niagara Falls, NY, and Bayport, TX. The transaction is expected to close by late 2025, subject to regulatory approval. Tesham Gor is expected to become CEO of the standalone business. Gemspring Capital, with $3.8 billion under management, aims to accelerate product development and expand customer relationships globally.

Positive

• Strategic divestment allows Goodyear to focus on core tire business
• Transaction expected to improve Goodyear's financial flexibility
• Goodyear retains key chemical facilities in Niagara Falls and Bayport

Negative

• Loss of vertical integration in synthetic rubber production
• Potential impact on operational synergies between chemical and tire divisions
• Transaction value not disclosed, making impact assessment difficult

Insights

Financial Analyst

Goodyear's divestiture of its chemical business to Gemspring allows it to focus on core operations while monetizing a non-essential division.

Goodyear Tire & Rubber Company has entered into a definitive agreement to sell its polymer chemicals business to Gemspring Capital, a private equity firm with $3.8 billion under management. This transaction represents a strategic divestiture for Goodyear, allowing the company to potentially streamline its operations and focus on its core tire manufacturing business.

The deal includes two operating plants in Texas (Houston and Beaumont) and an R&D facility in Akron, while Goodyear retains its chemical facilities in Niagara Falls and Bayport, along with rights to products from those facilities. This selective retention suggests Goodyear is maintaining control of chemical operations critical to its tire production while divesting operations that primarily serve external markets.

Importantly, Goodyear Chemical serves diverse end markets beyond tires, including food, medical, sporting goods, and industrial applications. This business diversity likely made it an attractive acquisition target with growth potential independent from Goodyear's main operations.

For investors, this transaction likely represents positive balance sheet management and operational focus from Goodyear's leadership. By divesting a non-core asset, Goodyear can potentially reduce operational complexity and allocate resources more efficiently toward its primary tire business. The transaction is expected to close by late 2025, subject to regulatory approval and other conditions, suggesting a deliberate transition period to maintain business continuity.

WESTPORT, Conn., May 22, 2025 /PRNewswire/ -- Gemspring Capital Management, LLC ("Gemspring"), a middle-market private equity firm, is pleased to announce that an affiliate has entered into a definitive agreement to acquire The Goodyear Tire & Rubber Company's (NASDAQ: GT) ("Goodyear" or the "Company") polymer chemicals business ("Goodyear Chemical" or the "Business"). The acquisition includes two operating plants located in Houston and Beaumont, Texas, and a research and development facility located in Akron, Ohio. Goodyear will retain its Chemical facilities in Niagara Falls, New York, and Bayport, Texas, and its rights to the products produced at such facilities.

Goodyear Chemical, headquartered in Akron, Ohio, is a leading producer of synthetic rubber, offering a broad product portfolio in North America. The Business serves a broad array of world-class customers, including many of the world's leading tire manufacturers. Beyond tires, Goodyear Chemical's products deliver differentiated solutions across a diverse set of end markets, such as food, medical, sporting goods, thermoset plastics, adhesives, packaging, and many other consumer and industrial applications.

Mathew Wallace, Managing Director at Gemspring, remarked: "We look forward to unlocking the full potential of Goodyear Chemical as a standalone business and supporting its next chapter of growth and innovation. Goodyear Chemical is an industry leader, underpinned by deep customer relationships, a mission-critical product portfolio, a track record of innovation, and incredibly talented employees. We are grateful to the Goodyear team who have driven the success of the business to date and are committed to working closely with Goodyear to ensure a smooth transition for associates, customers, and suppliers."

Tesham Gor, a Gemspring Executive Advisor who is expected to become Chief Executive Officer of the Business, added: "We are excited to advance Goodyear Chemical's industry positioning by leveraging our strategic, financial, and industry expertise to continue delivering world-class elastomer technologies and engineered solutions to our customers. As a standalone entity, the Business will be well positioned to accelerate product development, expand its relationships with existing and new customers globally, deliver sustainable solutions, continue to invest in its people, and drive growth and innovation through commercial, technical, and operational excellence."

The transaction is subject to regulatory approval, as well as other customary closing conditions and is expected to close by late 2025.

Piper Sandler & Co. acted as lead financial advisor, Greenhill & Co. served as a financial advisor, and Kirkland & Ellis LLP served as legal counsel to Gemspring on the transaction.

About Gemspring Capital
Gemspring Capital, a Westport, Connecticut-based private equity firm with $3.8 billion of capital under management, provides flexible capital solutions to middle market companies. Gemspring partners with talented management teams and takes a partnership approach to helping drive revenue growth, value creation and sustainable competitive advantages. Target companies have up to $2.0 billion in revenue and are in the business services, consumer services, financial and insurance services, healthcare, industrial, software, and tech-enabled services sectors. For more information, visit www.gemspring.com.

Contact: Mathew Wallace, mwallace@gemspring.com

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SOURCE Gemspring Capital

FAQ

What assets are included in Gemspring's acquisition of Goodyear Chemical?

The acquisition includes two operating plants in Houston and Beaumont, Texas, and a research and development facility in Akron, Ohio. Goodyear will retain its Chemical facilities in Niagara Falls, NY, and Bayport, TX.

When is the Goodyear Chemical (GT) acquisition expected to close?

The transaction is expected to close by late 2025, subject to regulatory approval and other customary closing conditions.

Who will be the CEO of Goodyear Chemical after the acquisition?

Tesham Gor, a Gemspring Executive Advisor, is expected to become Chief Executive Officer of the Business after the acquisition.

What markets does Goodyear Chemical serve?

Goodyear Chemical serves major tire manufacturers and various end markets including food, medical, sporting goods, thermoset plastics, adhesives, packaging, and other consumer and industrial applications.

How much capital does Gemspring Capital have under management?

Gemspring Capital has $3.8 billion of capital under management.