AKRON,
Ohio, July 22, 2024 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) ("Goodyear" or the
"Company") today announced that it has signed a definitive
agreement to sell its Off-the-Road ("OTR") tire business to The
Yokohama Rubber Company, Limited (TYO: 5101) ("Yokohama") for $905
million in cash. The transaction follows a previously
announced strategic review of the OTR tire business in connection
with the Goodyear Forward transformation plan.
Goodyear's OTR tire business provides industry-leading OTR tires
around the world for surface and underground mining, construction
and quarry, and port and industrial end markets. Goodyear OTR
offers a comprehensive suite of trusted products, services and tire
management solutions that help customers optimize their operations
and improve productivity and efficiency.
"The sale of the OTR business marks an important milestone as we
continue to execute against our Goodyear Forward transformation
plan," said Mark Stewart, Goodyear
Chief Executive Officer and President. "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."
Goodyear will retain its business providing OTR tires for U.S.
military and defense applications. Pursuant to a Product Supply
Agreement to be entered into 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 an initial period of up to five years
after the closing of the transaction.
The transaction is subject to regulatory approvals, other
customary closing conditions and consultations and is expected to
close by early 2025. Goodyear intends to use transaction proceeds
to reduce leverage and fund initiatives in connection with the
Goodyear Forward transformation plan.
Evercore is acting as exclusive financial advisor and Sullivan
& Cromwell LLP is acting as legal advisor to Goodyear.
About The Goodyear Tire & Rubber Company
Goodyear is one of the world's largest tire companies. It
employs about 71,000 people and manufactures its products in 54
facilities in 21 countries around the world. Its two Innovation
Centers in Akron, Ohio, and
Colmar-Berg, Luxembourg, strive to
develop state-of-the-art products and services that set the
technology and performance standard for the industry. For more
information about Goodyear and its products, go to
www.goodyear.com/corporate.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act and Section 21E of the Exchange
Act.
Such forward-looking statements include, but are not limited to,
statements relating to the proposed transaction, including
statements regarding the benefits of the transaction and the
anticipated timing of the transaction, and information regarding
the businesses of Goodyear and Yokohama. There are a variety of factors, many
of which are beyond our control, that affect our operations,
performance, business strategy and results and could cause our
actual results and experience to differ materially from the
assumptions, expectations and objectives expressed in any
forward-looking statements. These factors include, but are not
limited to: our ability to implement successfully the Goodyear
Forward plan and our other strategic initiatives, including the
transaction; risks relating to the ability to consummate the
transaction on a timely basis or at all, including failure to
obtain the required regulatory approvals or to satisfy the other
conditions to the closing of the transaction; actions and
initiatives taken by both current and potential competitors;
increases in the prices paid for raw materials and energy;
inflationary cost pressures; delays or disruptions in our supply
chain or the provision of services to us; a prolonged economic
downturn or period of economic uncertainty; deteriorating economic
conditions or an inability to access capital markets; a labor
strike, work stoppage, labor shortage or other similar event;
financial difficulties, work stoppages, labor shortages or supply
disruptions at our suppliers or customers; the adequacy of our
capital expenditures; changes in tariffs, trade agreements or trade
restrictions; foreign currency translation and transaction risks;
our failure to comply with a material covenant in our debt
obligations; potential adverse consequences of litigation involving
the Company; as well as the effects of more general factors such as
changes in general market, economic or political conditions or in
legislation, regulation or public policy. Additional factors are
discussed in our filings with the Securities and Exchange
Commission, including our annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K. In addition,
any forward-looking statements represent our estimates only as of
today and should not be relied upon as representing our estimates
as of any subsequent date. While we may elect to update
forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so, even if our
estimates change.
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SOURCE The Goodyear Tire & Rubber Company