Photo courtesy of Goodyear Tire & Rubber Co.
Goodyear Tire & Rubber Co. has signed a definitive agreement to sell its off-the-road (OTR) tire business to the Japan-based Yokohama Rubber Co. Ltd. for $905 million.
According to Goodyear, which is based in Akron, Ohio, the transaction follows a previously announced strategic review of the OTR tire business in connection with the Goodyear Forward transformation plan.
“The acquisition of Goodyear’s OTR business is a strategic investment that will contribute to achieving ‘hockey stick growth,’” Yokohama Rubber says, adding that the acquisition is part of its Yokohama Transformation 2026 and positions the off-highway tire (OHT) business as a future "growth driver.”
Goodyear's OTR tire business provides OTR tires around the world for surface and underground mining, construction and quarry and port and industrial end markets.
The company will retain its business providing OTR tires for United States military and defense applications. Pursuant to a product supply agreement to be entered into with Yokohama in connection with the closing of the deal, Goodyear will manufacture certain OTR tires for Yokohama at some of its manufacturing locations for an initial period of up to five years after the closing of the transaction, according to Goodyear.
“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan," Goodyear CEO and President Mark Stewart says. "We are grateful to our OTR colleagues who have driven the success of the business and are committed to working closely with Yokohama to ensure a smooth transition for customers and associates.”
The transaction is subject to regulatory approvals and other customary closing conditions and consultations, but is expected to close by early 2025. Goodyear intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
Yokohama estimates the global OHT or OTR market size to be worth about $26 billion annually and says it is expected to grow by 6 percent per year, which it calls “considerably higher" than the projected 2 percent annual growth for the consumer tire market.
Regarding Goodyear’s OTR business, Yokohama says it has established a strong track record of stable results, and its mining and construction machinery tires are globally recognized products with strong brand power realized by the use of the most advanced tire making technologies and excellent specialized services provided by highly skilled professional staff.
Under the transaction, Yokohama Rubber will acquire all shares of Goodyear subsidiary Nippon Giant Tire Co. Ltd., which operates an OTR plant in Japan, plus the Australia-based Goodyear Earthmover Pty Limited business unit, as well as certain OTR assets at other plants and facilities around the world.
Latest from Waste Today
- Anaergia Services enters into contract with Rialto Bioenergy Solutions
- Casella announces offering of revenue bonds
- New Hampshire pauses proposed landfill rules
- Waste Connections, Food Science Corp. partner with Texas city to recycle food waste
- Waga Energy signs partnership agreement with technology provider
- AMCS launches the AMCS Platform Winter 2024
- Pettibone adds new model to telehandler line
- Waste Pro near top of Florida private companies list
