Goodyear Sells Dunlop Brand to Sumitomo Rubber

Goodyear (IS:GOODY) has announced the sale of the Dunlop brand to Sumitomo Rubber Industries (SRI) for approximately $701 million in cash. The transaction includes trademarks and intangible assets for consumer, commercial, and specialty tires in Europe, North America, and Oceania. The deal structure consists of $526 million for the Dunlop brand, a $105 million Transition Fee, and approximately $70 million for inventory acquisition. Goodyear will continue to manufacture Dunlop consumer tires in Europe under a Transition License Agreement until at least December 2025 and will subsequently sign a five-year Transition Supply Agreement committing to purchase 4.5 million tires annually from SRI. Goodyear will retain rights to the Dunlop brand for motorcycle tires in Europe and Oceania and will sublicense the rights to commercial truck tires. The transaction, expected to be completed by mid-2025, aims to reduce leverage and finance Goodyear's Forward transformation plan.