The Goodyear Tire & Rubber Company (NASDAQ: GT) has announced the sale of the majority of its Goodyear Chemical business to Gemspring Capital Management, LLC. The sale is part of the Goodyear Forward Transformation Plan, and the company has signed a definitive agreement to sell its chemical facilities in Houston and Beaumont, Texas, and a related research office in Akron, Ohio.
The cash proceeds at closing are approximately $650 million, subject to certain post-closing adjustments. Additionally, the transaction includes a long-term supply agreement. The sale is expected to close by late 2025 and is subject to regulatory approval and other customary closing conditions.
Goodyear intends to use the proceeds from the sale to reduce leverage and fund initiatives in connection with the Goodyear Forward Transformation Plan. The company will retain its chemical facilities in Niagara Falls, New York, and Bayport, Texas, as well as its rights to the products produced at those facilities.
The company's CEO and President, Mark Stewart, expressed gratitude to the Goodyear Chemical associates and emphasized the commitment to optimizing the company's portfolio and creating shareholder value.
Goodyear is advised by Lazard as the lead financial advisor, Deutsche Bank as the financial advisor, and Squire Patton and Boggs as the legal advisor.
Goodyear is one of the world's largest tire companies, employing about 68,000 people and operating in 53 facilities across 20 countries. As a result of these announcements, the company's shares have moved -1.57% on the market, and are now trading at a price of $10.955. For more information, read the company's full 8-K submission here.
