Yokohama acquires Goodyear's OTR business

Yokohama has completed the acquisition of Goodyear's off-the-road (OTR) tire business for $905 million. The agreement to sell was reached last year, and as part of the deal, Yokohama acquired the production of a wide range of tires for the construction and mining industries in various sizes up to 63 inches, as well as technologies developed by Goodyear.

The former Goodyear OTR tire division employs around 500 people, and its revenue in 2023 was $678 million.

The Japanese company notes that the new transaction is part of its strategy to expand its lineup of specialized tires, increase production of OTR tires of all categories, and enhance its competitiveness in this segment of the tire market. Previously, Yokohama also acquired Alliance Tire Group (ATG) and Trelleborg Wheel Systems (TWS), which also produce tires for special equipment.

"The sale of the OTR business is an important step in Goodyear's transformation," said Mark Stewart, CEO and President of the American company. "Now our portfolio is more rationalized, which will contribute to increased efficiency and allow us to focus on our core products and services, which are among the best in the industry."

The proceeds from the sale will be used by Goodyear to reduce its debt burden and finance initiatives related to the Goodyear Forward business transformation plan, under which the company is also selling the Japanese company Sumitomo the rights to the Dunlop brand for $701 million. Earlier, it was also announced that the company plans to sell its chemical products business.

Yokohama plans to include the results of the acquired business in its consolidated financial statements in the first quarter of 2025 and is currently assessing the future impact of the asset acquisition on its revenues.