Goodyear Tire & Rubber Company ( GT ) has entered into a definitive agreement to sell its Off-the-Road (OTR) tire business to The Yokohama Rubber Company, Limited for $905 million in cash, as a part of its broader Goodyear Forward transformation plan.

Yokohama will acquire Goodyear’s OTR tire segment, which is renowned for providing high-quality tires for mining, construction, and industrial markets globally.

“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan,” said Mark Stewart, Goodyear Chief Executive Officer and President.

Goodyear will continue to supply OTR tires for U.S. military and defense applications. Additionally, through a Product Supply Agreement, Goodyear will manufacture certain OTR tires for Yokohama at specific facilities for up to five years post-transaction.

The transaction, pending regulatory and customary approvals, is expected to close by early 2025.

The proceeds from the sale will help Goodyear reduce debt and support initiatives under the Goodyear Forward transformation plan.

Price Action: GT shares closed lower by 1.71% at $12.10 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.