New York: Goodyear Tire & Rubber has announced it will sell its Off-the-Road (OTR) tire division to Japan’s Yokohama Rubber for $905 million in cash. This transaction is a key element of Goodyear’s ongoing efforts to streamline its operations and refocus its business strategy.
This move aligns with Goodyear’s broader initiative to cut costs and simplify its portfolio, which also includes divesting from its chemical unit and the Dunlop brand. The company aims to raise over $2 billion through these strategic divestitures.
In January, Goodyear appointed a former Stellantis executive as CEO in response to pressure from activist investor Elliott Investment Management L.P., who had been advocating for significant leadership changes.
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The OTR division, which manufactures tires for sectors such as mining and construction, is expected to complete the sale by early 2025. Post-acquisition, Goodyear will continue producing certain OTR tires for Yokohama at select facilities for up to five years, ensuring a smooth transition.
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Yokohama Rubber plans to leverage this acquisition to strengthen its product portfolio and expand its footprint in non-agricultural tire markets. The deal includes acquiring all shares of Nippon Giant Tire, which operates an OTR manufacturing plant in Hyogo Prefecture, Japan, and Goodyear Earthmover in Australia, among other global assets.
Evercore acted as Goodyear’s financial advisor for this transaction, which marks a significant shift in both companies’ strategic positions in the global tire industry.
