Goodyear sells Dunlop brand to Sumito Rubber Industries for $701 million

The Goodyear Tire & Rubber Company has signed a definitive agreement to sell the Dunlop brand to Sumitomo Rubber Industries (SRI). The agreement comprises 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 the company's Goodyear Forward transformation plan. In the transaction, SRI will pay Goodyear 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. 

Advancing the Goodyear Forward transformation plan

"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," says Mark Stewart, Goodyear CEO 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. In the agreement, Goodyear will license back the Dunlop trademarks from SRI for commercial (truck) tires in Europe on a long-term basis, subject to a royalty on sales. Goodyear does not expect the transaction to materially impact segment operating income through the term of the TLA.