Goodyear Announces Sale of Off-Road Tire Division to Yokohama for $905 Million

AKRON, Ohio, July 22, 2024 /PRNewswire/ — Goodyear Tire & Rubber Company (NASDAQ: GT) (“Goodyear” or the “Company”) today announced that it has entered into a definitive agreement to sell its off-the-road (“OTR”) tire business to Yokohama Rubber Company, Limited (TYO: 5101) (“Yokohama Rubber Company”).Yokohama“) For $905 million in cash. The transaction follows a previously announced strategic review of the OTR tire business as part of the Goodyear Forward transformation plan.

Goodyear’s OTR Tire business provides industry-leading OTR tires worldwide for the surface and underground mining, construction and quarrying, and ports and industrial sectors. Goodyear OTR offers a comprehensive portfolio of reliable tire management products, services and 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 our Goodyear Forward transformation plan,” said Mark StewartGoodyear CEO and President. “We are grateful to our OTR colleagues who have contributed to the success of the company and who are committed to working closely with Yokohama “to ensure a smooth transition for customers and associates.”

Goodyear will retain its OTR tire supply business for U.S. military and defense applications. Pursuant to a product supply agreement to be entered into with Yokohama As part of the closing of the transaction, Goodyear will manufacture certain OTR tires for Yokohama on certain of its production sites for an initial period of up to five years after the closing of the transaction.

The transaction is subject to regulatory approvals, other closing conditions and customary consultations and is expected to close in early 2025. Goodyear intends to use the proceeds from the transaction to reduce debt and fund initiatives related to the Goodyear Forward transformation plan.

Evercore is acting as exclusive financial advisor and Sullivan & Cromwell LLP is acting as legal advisor to Goodyear.

About Goodyear Tire & Rubber Company

Goodyear is one of the world’s largest tire manufacturers. It employs approximately 71,000 people and manufactures its products in 54 locations in 21 countries around the world. Its two innovation centers Akron, Ohioand Colmar-Berg, Luxembourgstrives to develop leading-edge products and services that set the standard for technology and performance for the industry. For more information about Goodyear and its products, visit www.goodyear.com/corporate.

Forward-Looking Statements

This press 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.

These 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 expected timing of the transaction, as well as information regarding Goodyear’s business and Yokohama. A variety of factors, many of which are beyond our control, 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 the forward-looking statements. These factors include, but are not limited to: our ability to successfully implement the Goodyear Forward Plan and our other strategic initiatives, including the transaction; risks related to the ability to close the transaction on a timely basis or at all, including the failure to obtain required regulatory approvals or satisfy other conditions to closing the transaction; actions and initiatives by current and potential competitors; increases in prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or in the provision of services provided to us; a prolonged economic downturn or period of economic uncertainty; deterioration in economic conditions or inability to access capital markets; a strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or disruptions in supply 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; the potential adverse consequences of litigation involving the Company; and 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, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. In addition, forward-looking statements represent only our estimates as of this date and should not be relied upon as representing our estimates as of any subsequent date. Although we may elect to update forward-looking statements at some point in the future, we expressly disclaim any obligation to do so, even if our estimates change.

SOURCE The Goodyear Tire & Rubber Company