By Kosaku Narioka
Goodyear Tire & Rubber plans to sell its Dunlop brand to Japan's Sumitomo Rubber Industries for about $700 million.
The Ohio-based tiremaker said Tuesday that it agreed to sell the Dunlop trademarks and intangible assets in Europe, North America and Oceania for consumer, commercial and other specialty tires to the Japanese maker of tire and other rubber products.
Goodyear said Sumitomo Rubber will pay the U.S. company about $701 million at closing for the transfer of the Dunlop brand across the relevant geographies, certain fees associated with the transition and the purchase of Dunlop tire inventory.
Goodyear intends to use the proceeds to reduce leverage and fund other initiatives, the company said.
The sale of the Dunlop brand follows a previously announced strategic review of the brand, it said.
The transaction is subject to regulatory approvals and is expected to close by mid-2025.
Goodyear said that Dunlop consumer tire sales totaled $532 million in 2023, while Dunlop commercial tire sales totaled $201 million in the same period.
Goodyear said it will license back the Dunlop trademarks for truck tires in Europe and retain its rights to the Dunlop trademarks for its motorcycle tire businesses in Europe and Oceania.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
January 07, 2025 22:29 ET (03:29 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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