06:32 AM EST, 01/08/2025 (MT Newswires) -- Goodyear Tire & Rubber ( GT ) said late Tuesday that it has agreed to sell its Dunlop brand to Sumitomo Rubber Industries for $701 million in cash at closing.

The deal includes trademarks and intangible assets required for consumer, commercial, and other specialty tire operations in Europe, North America and Oceania, as well as related intellectual property, Goodyear said.

Goodyear said it will license back Dunlop trademarks for use on truck tires while retaining rights to Dunlop trademarks for use of motorcycle tires in Europe and Oceania.

Goodyear said a transition license agreement allows the company to continue manufacturing, selling, and distributing Dunlop-branded consumer tires in Europe through Dec. 31, subject to a potential extension.

Goodyear said that under a transition offtake agreement, it will supply Sumitomo with certain Dunlop-branded tires in Europe for a five-year period.

Goodyear said it does not expect the deal to have a material impact on its segment operating income through the term of the transition license deal but expects $65 million in annual reduction in segment operating income during the term of the transition offtake agreement.

Goodyear said net proceeds would be used to reduce the company's leverage and fund its strategic initiatives.

The deal is expected to be completed by mid-2025.

Shares of Goodyear were up more than 1% in recent Wednesday premarket activity.