Goodyear Tire & Rubber announced Wednesday it sold the Dunlop brand to Sumitomo Rubber Industries (SRI) for $701 million. The sale includes consumer, commercial and specialty tires in Europe, North America and Oceania.
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"This is another important milestone as we continue to execute against our Goodyear Forward transformation plan," says Mark Stewart, Goodyear CEO and president. "We are optimizing our portfolio and reducing leverage to drive sustainable and substantial shareholder value creation. Not only does the transaction deliver significant value for our shareholders, it better positions Goodyear to enhance our focus on the growth of our core brands."
The transaction is subject to regulatory approval, customary closing conditions and consultations. Goodyear expects the deal to close midyear.
"Our team conducted a comprehensive process focused on maximizing value for Goodyear through a divestment of our Dunlop brand, and we are very pleased with the outcome achieved," says Christina Zamarro, executive vice president and CFO. "We are committed to working closely with SRI to ensure a smooth transition for customers of the Dunlop brand."
Goodyear will retain certain rights pertaining to the Dunlop brand, including trademarks for motorcycle tires in Europe and Oceania. It will also manufacture, sell and distribute Dunlop consumer tires in Europe through Dec. 31 under a transition license agreement. It will also supply certain Dunlop tires to SRI in Europe for a five-year period under a transition offtake agreement. Goodyear will license back Dunlop trademarks from SRI for commercial tires in Europe, subject to royalty on sales.
