听The Goodyear Tire & Rubber Company announced that it has signed a definitive agreement to sell the Dunlop brand, comprising trademarks and intangible assets necessary for operations of the brand business in Europe, North America and Oceania for consumer, commercial and other specialty tires, together with certain associated intellectual property, to Sumitomo Rubber Industries, Ltd.听
The sale of the Dunlop Brand follows a previously announced strategic review of the brand in connection with the Company鈥檚 Goodyear Forward transformation plan. Pursuant to the transaction terms, SRI will pay Goodyear cash proceeds at closing of approximately $701 million for the transfer of the Dunlop Brand across the relevant geographies, a 鈥淭ransition Fee鈥� for support in transitioning the Dunlop Brand to SRI, and the purchase of Dunlop tire inventory. The transaction also provides for additional ongoing offtake, licensing and other arrangements which are detailed below.听
听“This is another important milestone as we continue to execute against our Goodyear Forward transformation plan. We are optimizing our portfolio and reducing leverage to drive sustainable and substantial shareholder value creation,” said Mark Stewart, Goodyear Chief Executive Officer and President. “Not only does the transaction deliver significant value for our shareholders, it better positions Goodyear to enhance our focus on the growth of our core brands.”听
鈥淥ur team conducted a comprehensive process focused on maximizing value for Goodyear through a divestment of our Dunlop Brand, and we are very pleased with the outcome achieved,鈥� said Christina Zamarro, Executive Vice President and Chief Financial Officer. 鈥淲e are committed to working closely with SRI to ensure a smooth transition for customers of the Dunlop Brand.鈥�听