Goodyear to sell Off-the-Road tire business to Yokohama for $905 million (updated)

Yokohama Rubber Co

22/07/2024 11:59

(Adds details throughout, recasts)
       July 22 (Reuters) - Goodyear Tire & Rubber  GT.O  will
sell its Off-the-Road equipment tire business to Japan's
Yokohama Rubber  5101.T  for $905 million in cash, it said on
Monday, as part of a drive to streamline its business.
        Goodyear last year announced plans to cut costs and slim
down its portfolio of businesses, including its chemical unit,
its Dunlop brand and the Off-the-Road unit, a strategic review
aimed at delivering more than $2 billion in gross proceeds.
  
        The tire maker in January named a former Stellantis
executive as its next chief, after reports it was under pressure
from activist shareholder Elliott Investment Management L.P. to
do so.   
  
        The Off-the-Road business makes tires for industries
such as mining and construction. The deal is expected to close
by early 2025, Goodyear said in a statement.
  
        Goodyear said it expects to make certain Off-the-Road
tires for Yokohama Rubber at some of its manufacturing sites for
an initial period of up to five years after the closing of the
deal.
  
        With the acquisition, Yokohama Rubber aims to strengthen
its product portfolio and boost its line-up of tires in
non-agricultural segments, the Japanese company said in a
separate statement. 
  
        Yokohama Rubber said it will acquire all shares of
Nippon Giant Tire, which operates an Off-the-Road plant in
Japan's Hyogo prefecture and Goodyear Earthmover in Australia,
as well as other assets worldwide.
  
        Evercore advised Goodyear on the deal.
  

 (Reporting by Surbhi Misra in Bengaluru and Daniel Leussink in
Tokyo; Editing by David Dolan)
 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_
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