SHERIDAN, WYOMING – Feb. 4, 2025 – Yokohama Rubber Co., Ltd. (Yokohama) today announced the successful completion of its acquisition of Goodyear Tire & Rubber Company's off-the-road (OTR) tire business. This strategic move is poised to significantly bolster Yokohama's presence in the specialized tire market and drive the company's ambitious growth plans.
A Strategic Acquisition for Growth
The agreement for this acquisition was initially announced on July 22, 2024, and after a period of due diligence and necessary approvals, the transition is now complete. Yokohama will incorporate the acquired OTR business into its consolidated financial results starting from the first quarter of 2025. The company is currently evaluating the projected impact of this acquisition on its earnings.
This acquisition is a cornerstone of Yokohama's strategic investment strategy, specifically designed to achieve "hockey-stick growth" during the Yokohama Transformation 2026 (YX2026) period. YX2026 is the company's medium-term management plan spanning fiscal years 2024-2026, outlining a clear roadmap for expansion and market leadership.
Expanding Product Lines and Capabilities
Goodyear’s OTR business boasts a comprehensive portfolio of tires tailored for mining and construction equipment, encompassing a wide range of sizes. These tires range from smaller 25-inch diameter tires to massive, ultra-large tires with diameters from 49 to 63 inches, catering to diverse operational needs.
Beyond the extensive product lineup, the acquisition brings valuable assets to Yokohama, including Goodyear's cutting-edge tire technologies, a well-established and recognized brand, and the expertise of its skilled workforce, who provide professional services to customers. These combined assets create a powerful synergy poised to drive innovation and market penetration.
Strengthening Yokohama's Off-Highway Tire Portfolio
The acquisition plays a crucial role in Yokohama's overarching strategy to broaden its off-highway tire (OHT) product offerings. This strategic expansion includes enhancing production capacity and supply capabilities across all OHT categories. Specifically, the acquisition significantly strengthens Yokohama’s position in the vital mining and construction machinery tire segments. This move positions Yokohama to better serve the evolving demands of these industries and capitalize on future growth opportunities.
Looking Ahead
The completion of this acquisition marks a significant milestone for Yokohama. By integrating Goodyear's OTR business, Yokohama strengthens its market presence, gains access to advanced technologies, and enhances its ability to serve the mining and construction industries. This strategic move is expected to contribute substantially to the company's growth objectives outlined in the YX2026 plan. The integration process will be carefully managed to ensure a seamless transition and maximize the benefits of this strategic acquisition for both companies and their customers. Yokohama is confident that this acquisition will solidify its position as a leading player in the global tire industry.