AKRON, OH — Goodyear Tire & Rubber Co. has announced plans to sell its Engineered Products business to EPD Inc., an organization owned by private equity firm Carlyle Group, for $1.475 billion.
Goodyear stated in a release that the transaction is subject to customary closing conditions, including regulatory approvals and a completed labor agreement between EPD and the United Steelworkers.
Goodyear has also agreed to a trademark licensing agreement with EPD to use the Goodyear brand and other trademarks in connection with the Engineered Products business.
The tiremaker expects to record a gain on the sale, but the amount has not yet been finalized.
"This transaction reinforces our focus on our core consumer and commercial tire businesses and on improving our balance sheet," said Robert Keegan, Goodyear chairman and chief executive officer. "We anticipate using the proceeds for purposes including reducing debt, addressing legacy obligations and supporting growth in our tire businesses.
"Engineered Products is a successful business with outstanding associates who have made important contributions to Goodyear. We thank them for these contributions," added Keegan.
Timothy Toppen, president of the Engineered Products division, said the transaction will not interfere with daily operations. "The cornerstone of our operating philosophy stays intact – we want to help our customers grow their businesses for the long term," he said.
Goodyear noted that specific plans regarding debt reduction and investments will be announced at a later date.
