Goodyear Tire & Rubber Co. has completed the trifecta of its sales opportunities with its transformation plan after finding a buyer for "the majority of" its chemical business.
Goodyear will sell the chemical business to Gemspring Capital Management LLC for approximately $650 million.
Selling off the chemical business, which includes the production of synthetic rubber and products in the automotive aftermarket, consumer and industrial markets, follows Goodyear's separate deals to sell its Dunlop tire brand to Sumitomo Rubber Industries Ltd. and its off-the-road tire operation to Yokohama Rubber Co. Ltd.
Combined, those three entities were included in Goodyear Forward, a transformation plan the tiremaker released in November 2023.
Gemspring will pay Goodyear cash for the business, including facilities in Houston and Beaumont, Texas, as well as a related research office in Akron, Ohio.
The deal also includes a long-term supply agreement.
Goodyear says it will retain its chemical facilities in Niagara Falls, N.Y. and Bayport, Texas — as well as the rights to the products made at those facilities.
"With the sale of our chemical business, we continue to demonstrate our commitment to optimizing our portfolio and creating shareholder value," said Goodyear CEO and President Mark Stewart. "We are grateful to our Goodyear Chemical associates who have driven the success of this business. We will work closely with Gemspring to help ensure a smooth transition for our associates, customers and suppliers."
The deal is subject to typical approval by regulators and is expected to close in late-2025. Goodyear says it will use the proceeds of the sale "to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan."
