SHERIDAN, WYOMING – July 24, 2024 – Yokohama Rubber Co., Ltd. (YRC) today announced a definitive agreement to acquire the Off-The-Road (OTR) tire business of The Goodyear Tire & Rubber Company for US$905 million. This strategic move significantly expands YRC's global footprint and reinforces its commitment to growth in the thriving off-highway tire sector.
A Strategic Move to Drive Growth
The acquisition aligns seamlessly with YRC's ambitious Yokohama Transformation 2026 (YX2026) medium-term management plan, which identifies off-highway tires as a key growth driver. By integrating Goodyear's well-established OTR business, YRC gains immediate access to a wider range of products, technologies, and expertise, enabling it to better serve a diverse array of industrial customers.
Expanding Market Reach and Product Portfolio
YRC is already a formidable player in the global agricultural and forestry machinery tire market, which constitutes a significant portion of the overall off-highway tire sector. This acquisition complements YRC's existing strengths by expanding its product portfolio to include Goodyear's renowned OTR tires for mining, construction, and other industrial applications. The move not only diversifies YRC's offerings but also enhances its ability to meet the evolving needs of customers in various industries worldwide.
Leveraging Goodyear's Legacy and Expertise
Goodyear's OTR tires are recognized globally for their superior quality, innovative technologies, and comprehensive service capabilities. The acquisition brings YRC a wealth of experience and knowledge in the OTR tire segment,including expertise in developing and manufacturing large and ultra-large tires, a segment in which YRC currently has limited presence.
A Transaction with Global Reach
The acquisition encompasses all shares of Nippon Giant Tire Co., Ltd., which operates a dedicated OTR plant in Japan,and Goodyear Earthmover Pty Limited in Australia. Additionally, YRC will acquire specific OTR assets at various Goodyear facilities worldwide.
Ensuring a Smooth Transition and Continued Success
Mark Stewart, Goodyear's CEO and President, emphasized the company's commitment to a seamless transition for customers and employees. A product supply agreement will be in place to ensure uninterrupted supply of certain OTR tires to Yokohama for up to five years following the deal's closure.
A Bright Future for Yokohama Rubber Co.
This strategic acquisition marks a significant step forward for Yokohama Rubber Co. as it expands its global footprint and solidifies its position as a leader in the tire industry. By combining Yokohama's established expertise with Goodyear's OTR legacy, the company is poised for continued growth and success in the dynamic off-highway tire market. The transaction is expected to close by early 2025, subject to customary regulatory approvals.
About Yokohama Rubber Co., Ltd.
Yokohama Rubber Co., Ltd. is a global tire and rubber company headquartered in Tokyo, Japan. Founded in 1917, the company offers a wide range of products, including tires for passenger cars, trucks, buses, construction and mining equipment, industrial machinery, and aircraft. Yokohama is committed to developing innovative technologies and providing high-quality products that meet the evolving needs of its customers worldwide.