Goodyear Announces Sale of Dunlop Brand to Sumitomo Rubber Industries
Sale in line with the previously announced Goodyear Forward transformation plan…
The Goodyear Tire & Rubber Company has signed a definitive agreement to sell the Dunlop brand, comprising trademarks and intangible assets necessary for operations of the brand business in Europe, North America and Oceania for consumer, commercial and other specialty tires, together with certain associated intellectual property, to Sumitomo Rubber Industries Ltd.
The sale of the Dunlop Brand follows a previously announced strategic review of the brand in connection with the company’s Goodyear Forward transformation plan, officials stated in a press release. Pursuant to the transaction terms, SRI will pay Goodyear cash proceeds at closing of approximately $701 million for the transfer of the Dunlop Brand across the relevant geographies, a transition fee for support in transitioning the Dunlop Brand to SRI, and the purchase of Dunlop tire inventory.
The transaction also provides for additional ongoing offtake, licensing and other arrangements.
“This is another important milestone as we continue to execute against our Goodyear Forward transformation plan. We are optimizing our portfolio and reducing leverage to drive sustainable and substantial shareholder value creation,” said Mark Stewart, Goodyear chief executive officer and president. “Not only does the transaction deliver significant value for our shareholders, but it also better positions Goodyear to enhance our focus on the growth of our core brands.”
The transaction is subject to regulatory approvals, other customary closing conditions and consultations, and is expected to close by mid-2025. Goodyear intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan, officials noted.
“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,” said Christina Zamarro, executive vice president and chief financial officer. “We are committed to working closely with SRI to ensure a smooth transition for customers of the Dunlop Brand.”
Goodyear will retain its rights to the Dunlop trademarks for its motorcycle tire businesses in Europe and Oceania.
