Goodyear Tire & Rubber has agreed to sell its Off-the-Road (OTR) tire business to Yokohama Rubber for $905 million in cash. The sale is part of Goodyear’s ongoing effort to streamline its operations and generate more revenue.
Goodyear has been working to reduce costs and streamline its portfolio. The company previously announced plans to sell its chemical unit, Dunlop brand, and the OTR unit. This move is expected to generate over $2 billion in gross proceeds.
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Yokohama Rubber aims to strengthen its product portfolio and expand its tire offerings in non-agricultural segments. The acquisition includes Nippon Giant Tire, a Japanese OTR plant, and Goodyear Earthmover in Australia, along with other global assets.
The sale is expected to close by early 2025. Goodyear will continue to manufacture certain OTR tires for Yokohama for up to five years after the deal closes.
This transaction signifies Goodyear’s commitment to focusing on its core business segments. Yokohama Rubber’s acquisition strengthens its position in the OTR market.