The Goodyear Tire & Rubber Company (NASDAQ:GT) on Thursday disclosed a deal to divest the majority of its Goodyear Chemical business to Gemspring Capital Management, LLC.
As per the terms of its divestiture, Gemspring Capital will acquire Goodyear Chemical for around $650 million in cash at closing, pending customary post-closing adjustments.
The acquisition covers two operational plants in Houston and Beaumont, Texas, along with a research and development center in Akron, Ohio.
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Goodyear will maintain ownership of its Chemical facilities in Niagara Falls, New York, and Bayport, Texas, as well as the rights to the products manufactured at those sites.
Goodyear Chemical, a major synthetic rubber manufacturer with a diverse product range in North America, serves markets including automotive aftermarket, consumer, and industrial sectors.
This transaction stems from a strategic review of the Chemical business, undertaken as part of Goodyear’s Forward transformation plan.
The transaction is expected to close by late 2025, pending regulatory approval and other customary closing conditions.
Goodyear plans to use the proceeds from the sale to reduce its debt and fund key initiatives under its Goodyear Forward transformation strategy.
Mathew Wallace, managing director at Gemspring, stated, “Goodyear Chemical is an industry leader, underpinned by deep customer relationships, a mission-critical product portfolio, a track record of innovation, and incredibly talented employees.”
Tesham Gor, a Gemspring executive advisor who is expected to become CEO of the Business, added, “As a standalone entity, the Business will be well positioned to accelerate product development, expand its relationships with existing and new customers globally, deliver sustainable solutions, continue to invest in its people, and drive growth and innovation through commercial, technical, and operational excellence.”
As of March 31, 2025, Goodyear had $8.10 billion in long-term debt (Long Term Debt and Finance Leases, Operating Lease Liabilities) and held $978 million in cash and equivalents.
Investors can gain exposure to the stock via Invesco S&P Midcap 400 Pure Value ETF (NYSE:RFV) and First Trust Small Cap Value AlphaDEX Fund (NASDAQ:FYT).
Price Action: GT shares are trading higher by 0.63% to $11.20 premarket at last check Friday.
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