U.S.-based Goodyear Tire & Rubber Co. has signed a definitive agreement to sell its off-the-road (OTR) tire business to the Yokohama Rubber Co. 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.
“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan,” said Mark Stewart, Goodyear chief executive officer and president.
“We are grateful to our OTR colleagues who have driven the success of the business and are committed to working closely with Yokohama to ensure a smooth transition for customers and associates.”
Goodyear’s OTR tire business provides tires around the world for surface and underground mining, construction and quarry, and port and industrial end markets. The OEM said it will retain its business providing OTR tires for the 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, which is expected by early 2025.
Goodyear intends to use the proceeds from the transaction to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
Source: Goodyear Tire & Rubber Co.