From Yahoo Finance: 2025-05-23 14:03:00

Goodyear, the largest U.S. tire manufacturer, is selling its Goodyear Chemical arm to Gemspring Capital for $650 million. This deal is part of the company’s $2 billion divestment plan to pay down debt. CEO Mark Stewart aims to optimize the portfolio and create shareholder value. Stock has outperformed the S&P 500.

The sale of its chemical business marks the near completion of Goodyear’s divestment plan. The company has already raised $1.6 billion from the sale of other businesses earlier this year. Gemspring Capital will take over most of Goodyear’s synthetic rubber activities by the end of the year, ensuring access to raw materials for tire production.

In 2023, Goodyear agreed with activist shareholder Elliott Investment Management to sell off businesses, aiming to raise over $2 billion. The completion of divestments will total $2.2 billion and is a core pillar of Goodyear’s turnaround plan. The company is on track to meet its strategic and operational goals by the end of 2025.

Read more: Goodyear set to deliver on divestment plan after it strikes deal to sell synthetic rubber business