The Goodyear Tire & Rubber will sell its Off-the-Road (OTR) equipment tire business to Japan’s Yokohama Rubber for $905 million in cash, the American multinational tire manufacturer announced last month.
“The sale of the OTR business marks an important milestone as we continue to execute our Goodyear Forward transformation plan. 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,” said The Goodyear Tire & Rubber CEO and President Mark Stewart.
The sale of the OTR business marks an important milestone as we continue to execute our Goodyear Forward transformation plan.
The Goodyear Tire & Rubber CEO and President Mark Stewart
The OTR business makes tires for industries such as mining and construction. The deal is expected to close by early 2025, according to Goodyear.
In a press statement, Goodyear said it expects to make certain off-the-road tires for Yokohama Rubber at some of its manufacturing sites for an initial period of up to five years after the closing of the deal. It will also retain its business of providing OTR tires for U.S. military and defense applications.
With the acquisition, Yokohama Rubber will expand its product portfolio and boost its lineup of tires in nonagricultural segments, the Japanese company said in a separate statement.
Yokohama Rubber said it will acquire all shares of Nippon Giant Tire, which operates an off-the-road plant in Japan’s Hyogo prefecture and Goodyear Earthmover in Australia, as well as other assets worldwide.
