Goodyear Completes Divestiture Of Off-The-Road (OTR) Tire Business

Rhea-AI Summary

Goodyear Tire & Rubber Company (NASDAQ: GT) has completed the sale of its off-the-road (OTR) tire business to The Yokohama Rubber Company for approximately $905 million in an all-cash transaction, effective February 3, 2025.

The company plans to use the proceeds to reduce debt and fund initiatives under its Goodyear Forward transformation plan. CEO Mark Stewart described the divestiture as a significant milestone in Goodyear's transformation, emphasizing that the streamlined portfolio will drive further efficiencies and enhance focus on core products and services.

Positive

• Received $905 million in cash from OTR business sale
• Plans to reduce leverage with transaction proceeds
• Portfolio streamlining expected to improve operational efficiency

Negative

• Loss of revenue stream from OTR business segment

News Market Reaction – GT

-0.46%

1 alert

-0.46% News Effect

On the day this news was published, GT declined 0.46%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AKRON, Ohio, Feb. 3, 2025 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) ("Goodyear" or the "Company") has completed the previously announced divestiture of its off-the-road (OTR) tire business to The Yokohama Rubber Company, Limited, effective February 3, 2025, in an all-cash transaction valued at approximately $905 million.

"The sale of the OTR business is a significant milestone in Goodyear's transformation," said Goodyear Chief Executive Officer and President Mark Stewart. "Our portfolio is now more streamlined, driving further efficiencies and enhancing our focus on our core industry-leading products and services."

Goodyear intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.

Evercore acted as exclusive financial advisor and Sullivan & Cromwell LLP 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 53 facilities in 20 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate.

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:
DOUG GRASSIAN
330.796.3855
DOUG_GRASSIAN@GOODYEAR.COM  

 

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SOURCE The Goodyear Tire & Rubber Company

FAQ

How much did Goodyear (GT) sell its OTR tire business for?

Goodyear sold its OTR tire business to Yokohama Rubber Company for approximately $905 million in an all-cash transaction.

When did Goodyear (GT) complete the sale of its OTR business?

Goodyear completed the sale of its OTR business on February 3, 2025.

How will Goodyear (GT) use the proceeds from the OTR business sale?

Goodyear plans to use the proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.

What impact will the OTR business sale have on Goodyear's (GT) operations?

The sale will result in a more streamlined portfolio, driving further efficiencies and enhancing focus on core industry-leading products and services.