Goodyear to Divest Assets as Part of $650M Business Unit Sale
The agreement includes two facilities in Texas and an Ohio office building.
Goodyear will sell the majority of its chemical business to Gemspring Capital for $650 million. The transaction is set to close by late 2025, subject to regulatory approval and other customary conditions.
The tire company will dispose of a synthetic rubber manufacturing facility in Beaumont, Texas, which, according to public records, spans 4.3 million square feet, as well as a chemical plant in Houston that sits on 130 acres.
Additionally, Goodyear will sell an R&D facility in Akron, Ohio. The transaction also includes a long-term supply agreement.
Lazard and Deutsche Bank served as Goodyear’s financial advisors while Squire Patton and Boggs provided legal counsel. Piper Sandler & Co. and Greenhill & Co. provided financial advisory for Gemspring while Kirkland & Ellis acted as attorneys.
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Gemspring Executive Advisor Tesham Gor is slated to become the CEO of the chemical business. Under the new ownership, the enterprise will operate as a stand-alone entity, Gor said in prepared remarks.
Goodyear’s facilities in Niagara Falls, N.Y., and Bayport, Texas, as well as the products delivered at these locations, are not part of the transaction.
The Goodyear Forward plan marches on
According to the Goodyear Forward plan, the company set out to optimize its portfolio through strategic dispositions. The sale of its chemical business is just the latest—this month, the firm finalized the sale of its Dunlop brand for $735 million. In February. it closed the $905 million sale of its tire business, dubbed Off-the-Road.
The plan also included cost reduction actions, meant to save up to $1 billion by the end of 2025. Optimizations target the firm’s factories, supply chain and research and development activities and also involve footprint adjustments.
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