04:09 AM EDT, 07/22/2024 (MT Newswires) -- Goodyear Tire & Rubber Company ( GT ) said Monday it has agreed to sell Off-the-Road tire business to The Yokohama Rubber Company for $905 million in cash.

The company's Off-the-Road, or OTR, business provides tires globally for surface and underground mining, construction and quarry, as well as port and industrial end markets, the company said.

Goodyear also plans to use the transaction proceeds to reduce leverage and fund initiatives in connection with its transformation plan.

The transaction is expected to close by early 2025. The company said it will retain its business providing OTR tires for the US military and defense applications.

The companies will also enter a product supply agreement under which Goodyear will manufacture certain OTR tires for Yokohama for up to five years after the transaction closes.

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