Goodyear Sells Chemical Business

Goodyear Tire & Rubber Co. announced that it has signed a definitive agreement to sell "most" of its chemical business, Goodyear Chemical, to Gemspring Capital Management, LLC. Earlier, as part of its business transformation plan, Goodyear Forward, the company has already sold its off-the-road tire assets and the Dunlop brand rights to Dunlop.

Goodyear Chemical is a major producer of synthetic rubber, offering a wide range of products in the North American market. Under the terms of the deal, Gemspring will pay Goodyear around 650 million euros, subject to certain adjustments, and will acquire the plants in Houston and Beaumont (Texas, USA), as well as a research center in Akron (Ohio). In addition, the deal includes a long-term supply agreement.

"With the sale of our chemical business, we continue to optimize our asset portfolio in the interests of our shareholders," said Goodyear's Chairman, CEO and President Mark Stewart. "We are grateful to the partners of Goodyear Chemical, who have contributed to the success of this business, and we will work closely with Gemspring to ensure a smooth transition for our customers and suppliers."

The deal is now subject to regulatory approval and is expected to close by the end of 2025. Goodyear plans to use the proceeds to reduce debt and fund initiatives under the Goodyear Forward plan.

Goodyear will retain its chemical plants in Niagara Falls (New York) and Bayport (Texas).