Goodyear is close to closing the books on its divestment plan after the world’s third largest tire maker by volume struck a deal to sell most of its synthetic rubber business for $650 million in cash.
Stock in Goodyear has outperformed the S&P 500, rising 25% year-to-date versus minor declines in the benchmark U.S. equity index.
The majority of its synthetic rubber activities will then be handed to private equity firm Gemstone Capital Management toward the end of this year. Goodyear will, however, retain facilities in Niagara Falls, New York, and Bayport Texas, as well as the rights to the products made there.
“We will work closely with Gemspring to help ensure a smooth transition for our associates, customers and suppliers,” Stewart added.
The divestments, which will raise $2.2 billion in total, are a core pillar of its turnaround plan that was designed to be completed by the end of 2025.
