#USA #Akron #Goodyear #Sumitomo #Dunlop

Goodyear Completes Sale of Dunlop Brand

On May 7, 2025, the Goodyear Tire & Rubber Company announced it has successfully finalized the previously disclosed sale of its rights to the Dunlop brand in Europe, North America, and Oceania. This strategic divestiture includes consumer, commercial, and specialty tire lines, along with certain related intellectual property and inventory, to Sumitomo Rubber Industries, Ltd (SRI).

In a statement by Goodyear's CEO, Mark Stewart emphasized that this sale is a strategic move to support their "Goodyear Forward" initiative, aimed at optimizing the company's portfolio. He noted that selling the Dunlop brand aligns with the company's focus on reducing financial leverage while sharpening the emphasis on its core brands. Stewart expressed confidence in Goodyear's ongoing transformation and growth in targeted markets, highlighting their progress as they adapt to current industry challenges.

The transaction yielded substantial financial returns, with gross cash proceeds reaching $735 million. This figure comprises $526 million for the Dunlop brand, an additional $105 million designated as a transition support fee, and $104 million encompassing inventory value. Goodyear plans to utilize these funds not only for reducing its outstanding debt but also to reinforce its strategic transformation plans.

Goodyear is recognized as one of the leading tire manufacturers globally, employing approximately 68,000 individuals and operating 53 production facilities across 20 nations. The company fosters innovation through two key centers located in Akron, Ohio, and Colmar-Berg, Luxembourg. These facilities are committed to developing cutting-edge products and services that set industry benchmarks.

Goldman Sachs & Co. LLC served as the principal financial advisor for the transaction, with Barclays Capital Inc. and Cleary Gottlieb Steen & Hamilton LLP also playing advisory roles.

As companies navigate increasingly competitive landscapes, strategic sales such as that of the Dunlop brand can significantly impact operational focus and financial health. By divesting from specific brands, Goodyear aims to streamline its offerings and emphasize its primary brands, ensuring sustained growth and innovation in an evolving market.

Forward-looking statements in this announcement indicate that Goodyear is focused on its objectives, yet acknowledges potential risks, including market dynamics and operational challenges. Factors such as competitive actions, fluctuating raw material prices, and regulatory shifts could influence the company's future performance.

For ongoing updates on Goodyear's initiatives and financial health, stakeholders and interested parties are encouraged to follow the company's announcements closely. For more detailed information regarding Goodyear's products and corporate initiatives, visit Goodyear's corporate website.