Goodyear Completes Divestiture of Chemical Business
Rhea-AI Summary
Goodyear (NASDAQ: GT) completed the divestiture of the majority of its Goodyear Chemical business to an affiliate of Gemspring Capital Management, effective Oct. 31, 2025, for a purchase price of $650 million subject to adjustments.
At closing Goodyear received cash proceeds of approximately $580 million after working capital and intercompany receivables adjustments. The sale includes facilities in Houston and Beaumont, Texas, and a research office in Akron, Ohio; Goodyear retains facilities in Niagara Falls, New York, and Bayport, Texas, and rights to products from those sites.
Total gross proceeds from Goodyear Forward divestitures reached approximately $2.2 billion. Proceeds are intended for debt reduction and funding Goodyear Forward initiatives. Lazard, Deutsche Bank, and Squire Patton Boggs advised Goodyear.
Positive
- Transaction purchase price of $650 million
- Cash proceeds at closing of approximately $580 million
- Total gross proceeds from divestitures of approximately $2.2 billion
- Sale completes planned asset sales in the Goodyear Forward transformation program
Negative
- Cash received (~$580M) below headline purchase price ($650M) due to working capital adjustments
- Divestiture is partial: Goodyear retains facilities in Niagara Falls and Bayport, limiting full chemical exit
News Market Reaction
On the day this news was published, GT declined NaN%, reflecting a moderate negative market reaction. Argus tracked a peak move of +4.8% during that session. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was elevated at 2.1x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
"With the sale of our Chemical business, we have completed all of the planned asset sales included in our Goodyear Forward transformation program," said Goodyear Chief Executive Officer and President Mark Stewart. "Additionally, we surpassed initial expectations, with total gross proceeds from the divestitures of approximately
The Goodyear Chemical facilities in
Goodyear intends to use transaction proceeds for debt reduction and to fund initiatives in connection with the Goodyear Forward transformation plan.
Lazard acted as lead financial advisor; Deutsche Bank acted as financial advisor; and Squire Patton Boggs acted as legal advisor to Goodyear.
About The Goodyear Tire & Rubber Company
Goodyear is one of the world's largest tire companies. It employs about 68,000 people and manufactures its products in 51 facilities in 19 countries around the world. Its two Innovation Centers in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act.
Such forward-looking statements include, but are not limited to, statements relating to the transaction, including statements regarding the benefits of the transaction. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully the Goodyear Forward plan and our other strategic initiatives; risks relating to our ability to achieve the anticipated benefits from the transaction; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; foreign currency translation and transaction risks; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the Company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
CONTACT:
KELLY MCGLUMPHY
330.607.6857
KELLY_MCGLUMPHY@GOODYEAR.COM
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SOURCE The Goodyear Tire & Rubber Company
FAQ
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