Goodyear Tire & Rubber Company has announced the sale of its Dunlop brand to Sumitomo Rubber Industries (SRI) for cash proceeds of approximately $701 million upon closing, alongside additional payments such as a Transition Fee and compensation for Dunlop tire inventory. This definitive agreement will transfer the Dunlop brand, trademarks, and other associated intellectual property across Europe, North America, and Oceania for specific tyre segments, including consumer and commercial uses.
The deal aligns with Goodyear’s “Goodyear Forward” transformation plan, a strategy designed to optimize its brand portfolio and reduce leverage, offering long-term value to shareholders. Goodyear retains certain rights to the Dunlop brand, including using the Dunlop trademarks for motorcycle tires in Europe and Oceania and licensing them for commercial (truck) tyres. Additionally, the agreement includes a five-year Transition Offtake Agreement, under which Goodyear will supply Dunlop tires to SRI in Europe.
Mark Stewart, Goodyear’s CEO and President, described the transaction as a significant milestone, emphasizing that this step allows the company to focus on growing its core brands while strengthening shareholder value. Christina Zamarro, CFO, highlighted the thorough divestment process, affirming Goodyear’s dedication to a seamless transition for Dunlop customers.
This sale represents a pivotal moment for Goodyear as it streamlines its operations and focuses resources on its core business strategies, ensuring sustainable growth in a competitive global market.
