Vardah Gill
2 min read
In This Article:
The Goodyear Tire & Rubber Company (NASDAQ:GT) has agreed to sell most of its chemical business to Gemspring Capital Management in a deal valued at around $650 million.
As part of the agreement, which is expected to close by the end of the year, Gemspring will take over chemical production facilities located in Houston and Beaumont, Texas, along with a research office in Akron, Ohio. Goodyear will also enter into a long-term supply agreement as part of the transaction.
Goodyear Chemical is a major producer of synthetic rubber and supplies a wide range of products across the automotive aftermarket and various consumer and industrial markets in North America. Chief Executive Officer and President Mark Stewart on the recent development:
"With the sale of our chemical business, we continue to demonstrate our commitment to optimizing our portfolio and creating shareholder value. We are grateful to our Goodyear Chemical associates who have driven the success of this business. We will work closely with Gemspring to help ensure a smooth transition for our associates, customers and suppliers."
The Goodyear Tire & Rubber Company (NASDAQ:GT) will continue to operate its chemical plants in Niagara Falls, New York, and Bayport, Texas, and retain rights to the products manufactured at those locations. The final purchase amount may be adjusted after the deal closes.
The sale aligns with The Goodyear Tire & Rubber Company (NASDAQ:GT)'s previously announced strategic review of its chemical division. Proceeds from the transaction will be used to reduce debt and support future business initiatives.
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