Goodyear finishes selling Dunlop brand

Goodyear has finalized the sale of the Dunlop brand in Europe, North America, and Oceania for consumer, commercial, and specialized tires, as well as certain associated intellectual property and inventory, to Sumitomo Rubber Industries, Ltd. The completion of this deal signifies a strategic move by Goodyear to optimize its brand portfolio, trim its leverage, and hone its focus on its core range of brands. Mark Stewart, Goodyear’s Chief Executive Officer, expressed confidence in the company’s ability to advance its goals following this milestone.

The transaction yielded gross cash proceeds of $735 million at closing, comprising $526 million for the Dunlop brand, $105 million for a transition fee, and $104 million for inventory. The proceeds from this sale will be channeled towards reducing leverage in alignment with Goodyear’s transformation plan. Key financial advisors, such as Goldman Sachs & Co. LLC and Barclays Capital Inc., as well as legal counsel, Cleary Gottlieb Steen & Hamilton LLP, facilitated the deal for Goodyear.

Goodyear solidifies its position as one of the world’s largest tire manufacturers, with a global workforce of approximately 68,000 individuals across 53 production facilities in 20 different countries. The tire giant spearheads innovation through its state-of-the-art Innovation Centers based in Akron, Ohio, and Colmar-Berg, Luxembourg, striving to develop cutting-edge products and services that set industry benchmarks. Interested parties can access more information about Goodyear and its product range on its corporate website.

As per the news release, caution is exercised regarding forward-looking statements, accounting for possible impacts on the company’s operations, performance, and anticipated benefits from such key transactions. Factors such as executing Goodyear’s Forward plan effectively, competition dynamics, cost inflation, or disruptions in the supply chain or services provision could impact actual outcomes as opposed to expressed expectations. The company’s filings with the Securities and Exchange Commission, notably its annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, shed light on additional factors that might influence results.

Acknowledging the dynamic nature of the market, the company emphasizes that forward-looking statements are estimates as of the present and should not be solely relied upon for future reference. The absence of an obligation to update these statements remotely disclaims any duty to revise estimates, even with changes in projections.

For any media or analyst inquiries, individuals can reach out to Doug Grassian or Greg Shank through the provided contact details. The completion of the sale of the Dunlop brand signifies a pivotal step in Goodyear’s strategic restructuring for future growth and efficiency.