Goodyear has entered into an agreement with Yokohama tires to sell off their off-road tire business and divest from that market segment, as part of an initiative to free up funds for other initiatives within the company.
The transaction was made official yesterday, effective February 3, 2025, in an all-cash transaction valued at approximately $905 million.
Goodyear had announced this past summer that they were looking to get out of the off-road tire business, citing a desire to allocate funds elsewhere in the company for other initiatives.
“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 will keep its business providing OTR tires for U.S. military and defense applications. As part of a product supply agreement with Yokohama in connection with the closing of the transaction, Goodyear will manufacture certain OTR tires for Yokohama at some of its manufacturing locations for 5 years after the close of the transaction
Goodyear intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
