- The largest American tire manufacturer will sell the majority of its chemical arm at Goodyear To Gemspring Capital in a deal that is expected to be completed late this year. The amount of $ 650 million from the total revenue to the forefront comes from the $ 1.6 billion that it achieved from selling two other companies earlier this year, as it reached a major goal of the restructuring plan forward.
Goodyear is close to closing books for a plan to withdraw them after the third largest tire manufacturer through Volume, which concluded a deal to sell most of its artificial rubber business for $ 650 million in cash.
In 2023, Fortune 500 agreed toActivist shareholderElliot Investment Management toSelling a triple from companiesWith the aim of collecting more than two billion dollars to cut debts under the restructuring plan, goodyear.
This goal will now be reached after completing the disposal of its Dunlop brand and tire operations outside the highway in two separate transactions earlier this year, which already raised $ 1.6 billion in Total returns.
“With the sale of our chemical works, we continue to show our commitment to improving our portfolio and establishing value for shareholders,” said Mark Stewart, CEO of A. statement Thursday.
The stocks in Goodyear outperformed the S&P 500, as it increased by 25 % years so far against slight declines in the American stock index.
Half goodyear Chemical revenues for $ 1 billion in internal sales
The majority of its artificial rubber activities will then be delivered to Gemspring Capital in the private stock company at the end of this year. However, goodyear will keep the facilities at Niagara Falls, NY, and Bayport, Texas, as well as the rights of the products that were made there.
The deal includes a long -term supply agreement to ensure access to the raw materials needed for its tires, as it competes with larger competitors Michelin From France and Japan Bridgestone. Half of the Goodyear Chemical revenue is created approximately one billion dollars in the annual revenue internally.
“We will work closely with Gemspring to help ensure a smooth transition to our partners, customers and suppliers,” Stewart added.
Total disposal, which will raise $ 2.2 billion, is a key column for the transformation plan that is designed to be completed by the end of 2025.
This story was originally shown on Fortune.com
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