Goodyear to sell chemical unit for $650 million

AKRON, Ohio - The Goodyear Tire & Rubber Company (NASDAQ: GT) announced today it has reached an agreement to sell most of its Goodyear Chemical division to private equity firm Gemspring Capital Management, LLC. This move is part of Goodyear’s larger Goodyear Forward transformation plan, aimed at refining the company’s portfolio and enhancing shareholder value.

The sale includes Goodyear Chemical’s production facilities in Houston and Beaumont, Texas, as well as a research office in Akron, Ohio. The agreement also establishes a long-term supply partnership between the two entities. Goodyear will receive approximately $650 million in cash at the transaction’s close, with potential post-closing adjustments. This cash injection could provide significant relief to the company’s $9.036 billion debt position and high debt-to-equity ratio of 1.83, as reported in InvestingPro’s latest financial health assessment.

Goodyear’s CEO and President, Mark Stewart, emphasized the company’s focus on optimizing its portfolio and expressed gratitude to the Goodyear Chemical team for their contributions. He assured that Goodyear would collaborate with Gemspring to facilitate a smooth transition for employees, customers, and suppliers.

The transaction, which is expected to be finalized by late 2025, is contingent upon regulatory approvals and customary closing conditions. Goodyear plans to use the proceeds from the sale to reduce debt and invest in initiatives related to its transformation plan.

Despite divesting a significant part of its chemical business, Goodyear will retain facilities in Niagara Falls, New York, and Bayport, Texas, along with the rights to products manufactured there. The company, which generated $18.59 billion in revenue over the last twelve months, maintains a Fair overall financial health score according to InvestingPro’s comprehensive analysis, which includes over 30 financial metrics and additional ProTips available to subscribers.

Financial advisory services for this transaction were provided to Goodyear by Lazard as the lead advisor, with additional advice from Deutsche Bank, and legal counsel from Squire Patton and Boggs.

The sale is a strategic step for Goodyear, one of the world’s leading tire companies, which operates 53 manufacturing facilities across 20 countries and employs approximately 68,000 people globally. The company is known for its innovation centers in Akron, Ohio, and Colmar-Berg, Luxembourg, which focus on advanced products and services.

This news is based on a press release statement from The Goodyear Tire & Rubber Company.

In other recent news, Goodyear Tire & Rubber Company reported its first-quarter earnings for 2025, revealing an adjusted loss per share of $0.04, which fell short of the $0.05 earnings per share forecast. Revenue also missed expectations, coming in at $4.3 billion compared to the anticipated $4.42 billion. Despite these results, the company achieved a net income of $115 million, largely due to a $260 million gain from the sale of its OTR business. In a separate development, JPMorgan upgraded Goodyear’s stock to an Overweight rating with a price target of $17, citing factors like improving execution and debt reduction. Goodyear also announced significant leadership changes, appointing Jason J. Winkler, Motorola Solutions’ CFO, to its Board of Directors, and Grégory Boucharlat as senior vice president of Global Commercial. Additionally, the company launched the Goodyear Eagle F1 Asymmetric 6, a premium summer tire that has been recognized as the 2025 Test Winner by AutoBild Magazine. These developments reflect Goodyear’s ongoing efforts to enhance its financial and strategic position amidst a challenging market environment.

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