The Goodyear Tire & Rubber Co. has agreed to sell the majority of its chemical business, including an Akron research office, to a capital management company for $650 million.
The sale marks the latest piece of business the Akron-based company is selling off as part of its Goodyear Forward plan. Others include the $905 million deal to sell its off-the-road tire company to The Yokohama Rubber Co. and a $701 million sale and transition deal to offload the Dunlop tire brand to Sumimoto Rubber Industries.
Earlier this year, Goodyear executives said they were still considering whether to sell the chemicals business. In February, Christina Zamarro, Goodyear’s executive vice president and CFO, said private equity firms and strategic buyers were being considered.
Gemspring Capital Management, based in Connecticut, will buy the majority of the Goodyear Chemical business — specifically, the facilities in Houston and Beaumont, Texas, in addition to the Akron research center.
Goodyear will retain facilities in Niagara Falls, New York, and Bayport, Texas, as well as rights to products produced there.
Gemspring will become a long-term supplier for Goodyear as part of the transaction.
A spokesperson for Goodyear said in an email that fewer than 30 employees would be affected in Akron. The three facilities included in the deal are the company’s synthetic rubber and polymer business, which was the scope of the transaction.
In a statement, Goodyear CEO and President Mark Stewart said he was grateful to associates “who have driven the success of this business.” He said Goodyear plans to work with Gemspring to ensure a smooth transition for employees, customers and suppliers.
Goodyear Chemical is a leading producer of synthetic rubber, the statement said, and serves the automotive, consumer and industrial markets.
The sale must be approved by regulators and is expected to close by the end of the year. Goodyear expects to use the proceeds from the sale to reduce its leverage and fund other initiatives.
The Goodyear Forward plan, announced in November of 2023, aims to reduce the company’s costs by more than $1 billion by the end of this year while optimizing Goodyear’s portfolio and increasing margins on all of its businesses — consumer tires, commercial tires and aviation.
Earlier this year, Stewart said the Goodyear Forward plan was achieving a “truly remarkable outcome.” In 2024, it helped save the company $480 million, leading to the first year since 2015 — outside of the pandemic recovery period — when all three of Goodyear’s business margins experienced growth.
A message left after business hours at Gemspring Capital was not immediately returned. The Goodyear spokesperson said the sale should have no effect on the Polymer Hub, a $100 million investment in polymer innovation in the Akron area.