06/02/2025

Goodyear to Sell Chemical Business for $650M

Cleveland.com | Molly Walsh | May 23, 2025

Goodyear will sell its chemical business to private equity firm Gemspring Capital for approximately $650 million, continuing a sweeping transformation effort aimed at refocusing the Akron-based company and boosting shareholder value.

The sale includes Goodyear Chemical’s manufacturing sites in Houston and Beaumont, Texas, along with a research office in Akron, the company announced in a press release Thursday. Goodyear will retain chemical facilities in Niagara Falls, New York and Bayport, Texas. A long-term supply agreement is also part of the deal.

Goodyear said it plans to use the proceeds to reduce debt and fund initiatives under its “Goodyear Forward” strategy, a turnaround plan launched in late 2023.

The initiative was announced on the heels of pressure from activist investor Elliott Management which had publicly called on Goodyear to improve its performance. At the time, Elliot said Goodyear had worse profit margins than its peers, and it publicly recommended that the company sell some or all of its more than 1,000 retail stores.

As part of the strategy, Goodyear last July sold its Off-The-Road tire business to Japanese tire maker Yokohama for $905 million. In January, it sold the Dunlop tire brand to Sumitomo Rubber Industries Ltd. for an estimated $701 million.

“With the sale of our chemical business, we continue to demonstrate our commitment to optimizing our portfolio and creating shareholder value,” Goodyear CEO and President Mark Stewart said in a statement. “We are grateful to our Goodyear Chemical associates who have driven the success of this business. We will work closely with Gemspring to help ensure a smooth transition for our associates, customers and suppliers.”