Goodyear Takes Strategic Step by Selling Its Chemical Division to Gemspring Capital

In a significant move reflecting its ongoing transformation strategy, the Goodyear Tire & Rubber Company has announced the sale of its chemical division to Gemspring Capital Management, LLC. The announcement was made on May 22, 2025, and the sale comes in the wake of a strategic review of Goodyear's Chemical business. This decision is part of Goodyear’s broader initiative, dubbed the Goodyear Forward plan, aimed at optimizing the company’s portfolio and maximizing shareholder value.

Details of the Transaction

Gemspring Capital will acquire the majority of Goodyear Chemical for approximately $650 million in cash, with adjustments possible post-closing. Included in the sale are the chemical facilities located in Houston and Beaumont, Texas, as well as a research office situated in Akron, Ohio. Alongside the acquisition, Gemspring will enter into a long-term supply agreement with Goodyear, ensuring continued collaboration in the chemical sector.

Mark Stewart, Goodyear's CEO, commented on the deal: "With the sale of our chemical business, we continue to demonstrate our commitment to optimizing our portfolio and creating shareholder value. We are grateful to our Goodyear Chemical associates who have driven the success of this business." Stewart affirmed that the company will facilitate a smooth transition for all stakeholders involved, including employees, customers, and suppliers.

Future Directions for Goodyear

Despite this considerable divestiture, Goodyear plans to retain its Chemical facilities located in Niagara Falls, New York, and Bayport, Texas, along with the rights to the products manufactured at those plants. This strategy emphasizes the company's ongoing commitment to certain operational aspects of its chemical production while allowing it to pivot more effectively toward its core tire business.

The proposed sale is currently pending regulatory approval and other customary conditions but is expected to be finalized by late 2025. Goodyear intends to utilize the proceeds from this sale to decrease its debt and support various initiatives that are part of its transformation plan.

Advisory Support for the Transaction

To assist in the transaction, Goodyear has engaged several advisory firms. Lazard serves as the lead financial advisor, Deutsche Bank is also acting as a financial advisor, and the legal advisory is being provided by Squire Patton and Boggs. These firms bring valuable expertise to facilitate a successful transition and ensure that the transaction adheres to all legal and financial regulations.

About Goodyear

The Goodyear Tire & Rubber Company stands as one of the largest tire manufacturers globally, operating in 20 countries with around 68,000 employees and 53 manufacturing facilities. The company boasts innovation centers in Akron, Ohio, and Colmar-Berg, Luxembourg, focusing on developing cutting-edge products and setting performance standards in the tire industry. For more information about Goodyear and its extensive product range, visit www.goodyear.com/corporate.

The sale of Goodyear Chemical marks a pivotal point in the company's strategic journey and reflects its adaptive approach to the dynamic market landscape. With a renewed focus on its tire manufacturing core, Goodyear aims to enhance its operational efficiency and deliver even greater value to its shareholders moving forward.