Goodyear has sold its off-the-road tire business. Image: Goodyear
Goodyear and Yokohama have confirmed a multi-million dollar deal for the former’s off-the-road tire business.
Goodyear’s OTR tires are used in quarrying, construction, surface and underground mining markets around the world. According to the terms of the agreement, the sale is for $905 million US in cash and follows Goodyear strategic review of the OTR business in relation to its Goodyear Forward transformation plan.
“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan,” Goodyear chief executive officer and president Mark Stewart said.
“We are grateful to our OTR colleagues who have driven the success of the business and are committed to working closely with Yokohama to ensure a smooth transition for customers and associates.”
In its public release, Goodyear will use the process to fund its initiatives in the Goodyear Foward transformation plan and reduce leverage.
As part of the agreement, Goodyear will retain its business section which provides OTR tyres for US Military and defense applications. The company will make certain OTR tyres for Yokohama at some of its locations for up to five years after the transaction’s closing.
The transaction is subject to approvals, closing conditions and consultations. As a result, it is expected to close in early 2025.
The post Yokohama acquires Goodyear’s off-the-road tyre business appeared first on Quarry.