Goodyear Finishes Sale of Off-the-Road (OTR) Tire Business – Feb 3, 2025
Goodyear has finalized the sale of its off-the-road (OTR) tire business to The Yokohama Rubber Company, marking a successful completion of the transaction valued at $905 million. As Goodyear unveils this major development, Chief Executive Officer and President Mark Stewart expressed that shedding the OTR business is a pivotal step in the company’s evolution. By divesting this segment, Goodyear can refocus on its core products and services, thereby promoting operational efficiencies.
This divestiture aligns with Goodyear’s broader vision and strategic direction, known as the Goodyear Forward transformation plan. In following this roadmap for growth, the company plans to leverage the proceeds from this transaction to address debt obligations and invest in initiatives that drive future progress. The completion of the OTR tire business sale signifies Goodyear’s commitment to optimizing its portfolio to enhance its competitive position in the industry.
To facilitate the divestiture, Goodyear enlisted Evercore as the exclusive financial advisor and Sullivan & Cromwell LLP as the legal advisor. This strategic move underscores Goodyear’s commitment to sound decision-making and aligning with industry best practices. By engaging leading advisors in this divestiture, Goodyear ensures a smooth and efficient transition to maximize the benefits of this transaction.
An integral part of the global tire market, Goodyear stands as one of the largest tire companies worldwide, with a presence in 20 countries and a workforce of approximately 68,000 individuals. With innovation driving its core ethos, Goodyear operates two state-of-the-art Innovation Centers devoted to crafting cutting-edge products that define industry benchmarks.
Reflecting on the forward-looking nature of this sale, Goodyear acknowledges the importance of adapting to evolving market dynamics. While embracing the benefits of this transaction, the company remains attuned to external factors that influence its performance and trajectory. Addressing financial obligations and refining operational strategies are central to Goodyear’s commitment to delivering sustained value to stakeholders.
Overall, Goodyear’s completion of the OTR tire business divestiture signals a transformative period for the company. With a renewed focus on core strengths and strategic initiatives, Goodyear is poised to chart a successful course in the industry. This divestiture marks a significant chapter in Goodyear’s evolution, positioning the company for sustainable growth and continued industry leadership.