Tyre industry's blockbuster transaction! Goodyear (GT.US) sold its OTR tyre business to Yokohama Rubber Co. for $905mn

Wise Money learned that Goodyear Tire & Rubber Company (GT.US) announced on Monday that as part of its strategic transformation plan, it will sell its off-road tire (ORT) business to Yokohama Rubber Company (Yokohama Rubber) for $905 million. The transaction is subject to regulatory approvals and is expected to close in early 2025.

The OTR tire business provides OTR tires for mining, construction and quarry, port and industrial end markets worldwide. Goodyear Tire & Rubber Company intends to use the proceeds of the transaction to reduce its leverage and fund initiatives related to its long-term transformation plan.

Goodyear Tire & Rubber Company noted that, following a product supply agreement with Yokohama Rubber, it will retain its OTR tire business for military and defense applications in the United States. In addition, the Company entered into a product supply agreement to manufacture certain OTR tires for Yokohama Rubber for five years following the transaction.