The Goodyear Tire & Rubber Company reported Monday has completed the previously announced divestiture of its off-the-road (OTR) tire business to The Yokohama Rubber Company Limited.
The move is effective Feb. 3, as an all-cash transaction valued at approximately $905 million.
“The sale of the OTR business is a significant milestone in Goodyear’s transformation,” says Goodyear President and CEO Mark Stewart. “Our portfolio is now more streamlined, driving further efficiencies and enhancing our focus on our core industry-leading products and services.”
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Goodyear states it intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan. Evercore acted as exclusive financial advisor and Sullivan & Cromwell LLP acted as legal advisor to Goodyear.