Goodyear Tire & Rubber Co. says the sale of its OTR tire business to Yokohama Rubber Co. Ltd. has been finalized.
The all-cash deal is valued at $905 million, according to a recent statement from Goodyear.
“The sale of the OTR business is a significant milestone in Goodyear’s transformation,” says Goodyear CEO 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 officials say the Akron, Ohio-based company “intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.”
This past November, Yokohama noted that its acquisition of Goodyear Tire & Rubber Co.’s OTR tire business was “proceeding smoothly.”
Yokohama's acquisition of Goodyear’s OTR tire business unit was first announced in July 2024.
The Tokyo, Japan-based firm says its acquisition of Goodyear's OTR division will contribute to the ongoing expansion of its off-highway tire business.
Yokohama expects the global OTR tire market to grow around 6% per year — “considerably higher than the projected 2% annual growth for the consumer tire market,” according to Yokohama officials.
The company believes it is already “well-positioned” in the ag and forestry tire categories, which it estimates accounts for about 40% of the total off-highway tire market.
The purchase of Goodyear’s OTR tire division, which manufactures tires up to 63 inches in diameter, is designed to complement Yokohama’s product range in non-agricultural applications.
Yokohama acquires all shares of Nippon Giant Tire Co. Ltd., which operates Goodyear’s OTR tire plant in Japan, plus Goodyear Earthmover Pty. Ltd. in Australia, in addition to “certain OTR assets at the other plants and facilities around the world.”
This includes Goodyear’s OTR tire retreading plant in Canada.
