Goodyear Sells Chemical Business
At the end of 2023, Goodyear released a transformation plan called "Forward Plan". In 2024, Goodyear gradually completed the transaction of off-road tires and Dunlop's European operating rights. In 2025, Goodyear sold the last item in the asset sale plan, the chemical business unit, to Gemspring Capital Management L.L.C.
Goodyear Chemical Business Divestiture
On November 15, 2023, Goodyear announced its transformation plan. The business sale plan is particularly eye-catching. 18 months later, in May 2025, Goodyear completed the entire sale plan and signed a final agreement to sell its chemical business unit to Gemspring Capital Management L.L.C. for a transaction price of approximately US$650 million (RMB 4.7 billion). It is reported that Gemspring will pay Goodyear approximately US$650 million at the time of delivery, but more adjustments will still need to be made based on the delivery situation.
The US$650 million transaction includes Goodyear's chemical plants in Houston and Beaumont, Texas, and related research offices in Akron. It is worth noting that the transaction also includes a long-term supply agreement. However, according to the information disclosed so far, Goodyear does not seem to be selling its chemical plants in New York and Texas, and the products produced by these plants in a package.
Goodyear's chemical business mainly produces synthetic rubber, with a rich product matrix, mainly serving the automotive aftermarket and the passenger car and industrial terminal markets.
Regarding the sale of the chemical business, Goodyear CEO and President Mark Stewart said in a statement that Goodyear's sale of the chemical business further demonstrated the manufacturer's commitment to optimizing the portfolio and creating shareholder value.
The proceeds from the sale of the chemical business can reduce leverage and provide funds for initiatives related to Goodyear's long-term development plan. "We are very grateful to our colleagues at Goodyear Chemical for driving the success of this business.
We will work closely with Gemspring to help ensure a smooth transition for our colleagues, customers and suppliers." Goodyear said the transaction is still subject to regulatory approval and other customary closing conditions.
The transaction is expected to be completed by the end of this year. Lazard served as the lead financial advisor for the sale of the chemical division; Deutsche Bank served as a financial advisor; Squire Patton and Boggs served as Goodyear's legal counsel.
Previously, Goodyear has completed the sale of its Dunlop European operations and its off-highway tire business. According to the transaction process, Goodyear sold the North American and European copyrights of the Dunlop brand to Sumitomo Rubber Industries, Ltd. for US$735 million (RMB 5.3 billion) at the beginning of this month, including US$526 million in Dunlop trademark rights, US$105 million in transition support fees and US$104 million in inventory.
Sumitomo Rubber has since acquired the rights to Dunlop brand consumer, commercial and other specialty tires in Europe, North America and Oceania, as well as related intellectual property rights and inventory. In early February of this year, Yokohama completed the acquisition of Goodyear's OTR tire business in an all-cash transaction of approximately US$905 million (RMB 6.5 billion).
The acquisition of the chemical business once again confirms the layout of Goodyear's transformation mentioned by Goodyear's CEO in a conference call with investors on February 14. "Goodyear has already begun strengthening its financial foundation and is on track to position the company for long-term success with its transformation plan. Looking back at my tenure at Goodyear in 2024, I am excited about what we have accomplished."
