Goodyear sells Dunlop brand to Sumitomo for A$1.14b
Goodyear Tire & Rubber Co announced the sale of its Dunlop brand to Japan's Sumitomo Rubber Industries for US$701 million ($1.14 billion) in cash. The move is part of Goodyear's ongoing efforts to streamline its business operations.
Transaction snapshot
Deal value: US$701 million ($1.14 billion)
Deal multiples: N/A
Deal type: Brand and trademark sale
Investors: Sumitomo Rubber Industries
The transaction includes the Dunlop brand and its trademarks in Europe, North America, and Oceania. Goodyear will continue to sell Dunlop-branded passenger car tyres in Europe through 31 December 2025, paying royalties to Sumitomo Rubber during this period.
Following the initial transition, Goodyear will supply specific Dunlop-branded tyres to Sumitomo in Europe for five years. Additionally, Goodyear has secured a long-term licence for Dunlop truck tyre trademarks in Europe, agreeing to pay royalties on related sales.
In 2023, Goodyear outlined plans to cut costs and refine its business portfolio, aiming to generate more than US$2 billion ($3.26 billion) in gross proceeds. This included selling its Off-the-Road equipment tyre business to Japan's Yokohama Rubber for US$905 million ($1.48 billion) in cash.
Tire manufacturers, including Goodyear, face mounting competition from low-cost Chinese producers and increased regulatory scrutiny over environmental concerns. The sale of the Dunlop brand is a strategic step for Goodyear to address these challenges while focusing on core business areas.
