The Goodyear Tire & Rubber Company has announced that it has signed a definitive agreement to sell its Off-the-Road tire business to The Yokohama Rubber Company, Limited for $905 million in cash. The transaction follows a previously announced strategic review of the OTR tire business in connection with the Goodyear Forward transformation plan.
Goodyear's OTR tire business provides OTR tires around the world for surface and underground mining, construction and quarry and port and industrial end markets. Goodyear OTR offers a comprehensive suite of trusted products, services and tire management solutions.
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 intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
Evercore is acting as exclusive financial advisor and Sullivan & Cromwell LLP is acting as legal advisor to Goodyear.
