Goodyear Sells Chemical Business

Goodyear Tire & Rubber Company Co. has finalized the sale of the majority of its chemical business to an affiliate of Gemspring Capital Management LLC.

The transaction, valued at $650 million, went through on effective Oct. 31.

"At the time of closing, Goodyear received cash proceeds of approximately $580 million, which reflects working capital adjustments, including an adjustment for intercompany receivables," say Goodyear officials.

"With the sale of our chemical business, we have completed all of the planned asset sales included in our Goodyear Forward transformation program," says Goodyear CEO and President Mark Stewart. 

These included the sale of Goodyear's OTR tire business and the sale of its Dunlop brand.

The company's chemical facilities in Houston and Beaumont, Texas, and a related research office in Akron, Ohio, are included in this sale. Goodyear retains its chemical facilities in Niagara Falls, N.Y., and Bayport, Texas, and its rights to the products produced at these facilities.

Goodyear intends to use transaction proceeds for debt reduction and to fund initiatives in connection with the Goodyear Forward plan.