Goodyear Finalizes Dunlop Brand Sale To Sumitomo Rubber For USD 735 Million

Goodyear Tire & Rubber Company completed the sale of its rights to the Dunlop brand in Europe, North America and Oceania. The transaction also includes related intellectual property and tire inventory. The buyer, Sumitomo Rubber Industries Ltd (SRI), is a Japan-based tire company. Goodyear stated that the funds will be used to lower its debt as part of its Goodyear Forward transformation plan.

The deal brought in gross cash proceeds of $735 million. This includes $526 million for the Dunlop brand rights, $105 million as a transition support fee and $104 million for inventory.

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Goldman Sachs & Co. LLC was the lead financial advisor for Goodyear. Barclays Capital Inc. also acted as a financial advisor and legal support was provided by Cleary Gottlieb Steen & Hamilton LLP.

Goodyear is a tire manufacturer operating in 20 countries, with 53 production facilities and around 68,000 employees. It also runs Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg.

Goodyear included a disclaimer noting that any forward-looking statements in the release are subject to risks and uncertainties. These include market conditions, competition, supply chain disruptions and inflation, among others. Full risk factors are available in the company’s filings with the U.S. Securities and Exchange Commission.

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Mark Stewart, Chief Executive Officer and President, Goodyear, said, "The sale of the Dunlop brand is another action that advances Goodyear Forward by optimizing our portfolio, reducing leverage and sharpening our focus on our core portfolio of brands. Goodyear is making significant progress, transforming our operations and growing in our targeted segments, and I am confident in our ability to continue delivering on our objectives."