Goodyear completes sale of OTR tire business to Yokohama Rubber
Akron, OH – The Goodyear Tire & Rubber Company has completed the previously announced divestiture of its off-the-road (OTR) tire business to The Yokohama Rubber Company, Limited, effective February 3, 2025, in an all-cash transaction valued at approximately $905 million.
“The sale of the OTR business is a significant milestone in Goodyear’s transformation,” said Goodyear Chief Executive Officer and President Mark Stewart. “Our portfolio is now more streamlined, driving further efficiencies and enhancing our focus on our core industry-leading products and services.”
Goodyear intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
Evercore acted as exclusive financial advisor and Sullivan & Cromwell LLP acted as legal advisor to Goodyear.
The OTR business provides specialized tires for the mining & construction industries among others. The two companies’ agreement on the transaction was announced on July 22, 2024. Yokohama Rubber plans to include the acquired business in its consolidated results from the first quarter of 2025 and is currently examining the addition’s estimated impact on consolidated earnings.
The acquisition is a strategic investment aimed at achieving “Hockey Stick Growth” during Yokohama Transformation 2026 (YX2026), the Company’s medium-term management plan for fiscal years 2024–2026. In addition to an extensive lineup of mining & construction machinery tires with diameters ranging from 25 inches or less to large- and ultra-large sizes of 49 to 63 inches, the acquisition brings to Yokohama Rubber the former Goodyear business’ advanced technologies, strong brand power, and professional services provided by skilled staff.
The acquisition is a key part of Yokohama Rubber’s effort to expand its off-highway tire (OHT) product lineup and its production and supply capabilities in all OHT categories, including tires for mining & construction machinery, as it seeks to strengthen its market position and competitiveness in the OHT business and enhance its corporate value.