This divestiture concludes all planned asset sales under the program, surpassing initial gross proceeds expectations by reaching approximately $2.2 billion in total.
The Goodyear Tire & Rubber Company announced yesterday the successful completion of the previously disclosed divestiture of the majority of its Goodyear Chemical business. The transaction, effective as of October 31, 2025, sees an affiliate of Gemspring Capital Management, LLC acquiring the bulk of the chemical division for a purchase price of $650 million, subject to customary adjustments.
At the time of closing, Goodyear received cash proceeds of approximately $580 million. This amount reflects working capital adjustments, including an adjustment for intercompany receivables, as detailed by the company.
This strategic divestiture marks the final and perhaps most symbolic step in Goodyear's ambitious Goodyear Forward transformation program, a major initiative aimed at streamlining the company's portfolio and enhancing its focus on core operations.
The assets included in the sale comprise the Goodyear Chemical manufacturing facilities located in Houston and Beaumont, Texas, along with a related research office situated in Akron, Ohio. Importantly, Goodyear maintains a strategic foothold in its chemical operations. The company retains its Chemical facilities in Niagara Falls, New York, and Bayport, Texas, along with all rights to the products manufactured at these specific locations. This retained capacity ensures Goodyear can secure its supply chain for essential inputs while capitalizing on the divestiture.
"With the sale of our Chemical business, we have completed all of the planned asset sales included in our Goodyear Forward transformation program," stated Mark Stewart, Goodyear Chief Executive Officer and President. He emphasized the program's success, noting, "Additionally, we surpassed initial expectations, with total gross proceeds from the divestitures of approximately $2.2 billion."
The CEO highlighted the anticipated benefits of this focused approach, adding, "As a result, we have a more focused, streamlined portfolio that will allow us to grow our core products and services and achieve our vision of being #1 in Tires and Service."
The company has clearly outlined its plan for the substantial capital generated from this transaction. Goodyear intends to allocate the transaction proceeds primarily toward debt reduction, a crucial step in strengthening its balance sheet. Furthermore, the funds will be used to support and finance various initiatives integral to the ongoing execution of the Goodyear Forward transformation plan.
The successful conclusion of this sale and the broader asset divestiture program is expected to reshape Goodyear's operational and financial profile, paving the way for targeted investments in its core tire and service business.
