Yokohama Rubber Co. (YRC) has completed the acquisition of Goodyear's off-the-road (OTR) tire business, valued at $905 million (€878 million), the Japanese group reported 4 Feb.
The deal, first announced in July 2024, is an all-cash transaction and part of the company's "Goodyear Forward" plan to streamline its business model, President and CEO Mark Stewart said.
"The sale of the OTR business is a significant milestone in Goodyear's transformation," he said. "Our portfolio is now more streamlined, driving further efficiencies and enhancing our focus on our core industry-leading products and services."
For YRC, this deal is the latest step in growing its OTR business. The company finalized a deal to acquire Trelleborg Wheel Systems for $2.3 billion in 2023, and believes these two acquisitions to be foundational pieces of its "Yokohama Transformation 2026" plan, which is set to drive "hockey stick growth."
The Japanese group intends to include the acquired business in its consolidated results from the first quarter of 2025 and is currently examining the addition's estimated impact on consolidated earnings.
"The acquisition is a key part of Yokohama Rubber's effort to expand its off-highway tire (OHT) product lineup and its production and supply capabilities in all OHT categories, including tires for mining and construction machinery, as it seeks to strengthen its market position and competitiveness in the OHT business and enhance its corporate value," Yokohama said.
The acquisition will increase the company's product line of mining and construction machinery tires, ranging in diameter from 25 inches or smaller to large and oversized sizes from 49 to 63 inches. In addition, the former Goodyear business will bring advanced technology, strong brand power and professional services provided by skilled employees.
Goodyear's off-the-road tire business, with sales of approximately $678 million in 2023, includes two production plants in Topeka, Kansas and Tatsuno, Japan, which produce construction, mining and industrial tires.
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