The Goodyear Tire & Rubber Company announced that it has signed a definitive agreement to sell the Dunlop brand to Sumitomo Rubber Industries (SRI).

The sale includes trademarks and intangible assets necessary for operations of the brand business in Europe, North America and Oceania for consumer, commercial and other specialty tires, together with certain associated intellectual property.

The sale of the Dunlop Brand follows a previously announced strategic review of the brand in connection with the company’s Goodyear Forward transformation plan.

Pursuant to the transaction terms, SRI will pay cash proceeds at closing of approximately $701 million for the transfer of the Dunlop Brand across the relevant geographies, a “Transition Fee” for support in transitioning the Dunlop Brand to SRI, and the purchase of Dunlop tire inventory. The transaction also provides for additional ongoing offtake, licensing and other arrangements which are detailed below.

“This is another important milestone as we continue to execute against our Goodyear Forward transformation plan. We are optimizing our portfolio and reducing leverage to drive sustainable and substantial shareholder value creation,” said Mark Stewart, Goodyear Chief Executive Officer and President.

“Not only does the transaction deliver significant value for our shareholders, it better positions Goodyear to enhance our focus on the growth of our core brands.”

“Our team conducted a comprehensive process focused on maximizing value for Goodyear through a divestment of our Dunlop Brand, and we are very pleased with the outcome achieved,” said Christina Zamarro, Executive Vice President and Chief Financial Officer.

“We are committed to working closely with SRI to ensure a smooth transition for customers of the Dunlop Brand.”

The transaction is subject to regulatory approvals, other customary closing conditions and consultations and is expected to close by mid-2025. Goodyear intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.

Goodyear will receive approximately $701 million of cash proceeds at closing from SRI, across three transaction components.

In addition, under the terms of a Transition License Agreement (“TLA”), Goodyear will continue to manufacture, sell and distribute Dunlop branded consumer tires in Europe through at least December 31, 2025.