Goodyear Tire & Rubber Company (NASDAQ: GT) has announced the sale of its off-the-road (OTR) tire business to Yokohama Rubber Company, Limited (TYO: 5101) for a whopping $905 million in cash. The transaction, which is part of the Goodyear Forward Transformation Plan, is expected to close by early 2025.
Despite the sale, Goodyear will continue to provide OTR tires for U.S. military and defense applications and will enter into a product supply agreement with Yokohama to manufacture certain OTR tires for them for an initial period of up to five years after the closing of the transaction.
The company intends to use the proceeds from the sale to reduce leverage and fund initiatives as part of the Goodyear Forward Transformation Plan.
Evercore is acting as the exclusive financial advisor, and Sullivan & Cromwell LLP is acting as the legal advisor to Goodyear in this transaction.
Goodyear is a global giant, employing about 71,000 people and operating 54 facilities in 21 countries. It also operates two innovation centers, striving to develop state-of-the-art products and services in Akron, Ohio, and Colmar-Berg, Luxembourg. As a result of these announcements, the company's shares have moved -1.7% on the market, and are now trading at a price of $12.1. If you want to know more, read the company's complete 8-K report here.
