Yokohama Rubber purchased the OTR tire business in an all-cash transaction on Feb. 3, for $905 million.
The Goodyear Tire & Rubber Company has finalized the previously announced OTR tire business sale. The Yokohama Rubber Company, Limited, purchased the OTR tire business in an all-cash transaction on Feb. 3, for $905 million.
Goodyear OTR Tire Sale Part of Long-Term Restructuring
“The sale of the OTR business is a significant milestone in Goodyear’s transformation,” said Goodyear Chief Executive Officer and President Mark Stewart. “Our portfolio is now more streamlined, driving further efficiencies and enhancing our focus on our core industry-leading products and services.”
Goodyear sold its OTR division as part of long-term restructuring efforts. This enables the company to focus more on core business segments, Stewart said. This move improves operational efficiency and supports future growth, Goodyear said in a press release.
Strategic Use of Proceeds
Goodyear says it plans to use proceeds from the sale to reduce leverage and fund initiatives within the Goodyear Forward transformation plan. By streamlining its portfolio, Goodyear says it strengthens its market position and increases investments in innovation.
Evercore acted as the exclusive financial advisor and Sullivan & Cromwell LLP acted as legal advisor to Goodyear.
