Goodyear has agreed to sell its historic Dunlop tyre brand to Sumitomo Rubber Industries in a deal worth approximately $701m, about £574m in proper money. This horribly complex agreement will see the “trademarks and intangible assets necessary for operations of the brand business in Europe, North America and Oceania for consumer, commercial and other speciality tyres, together with certain associated intellectual property” transferred to Sumitomo.
The terms feature a “transition offtake agreement” in Europe that will last for five years, as well as Goodyear immediately licensing back Dunlop trademarks for use on commercial vehicle tyres and also retaining its rights to Dunlop trademarks for use on motorcycle tyres in Europe and Oceania. Goodyear expects the deal to close by mid-2025, subject to regulatory approvals and other customary closing conditions and consultations.
Dunlop was originally founded in 1888 by John Boyd Dunlop and based in Belfast. Speculation on the once-British tyre brand’s future has been rife since Goodyear’s acquisition and integration of Cooper Tire, including the also once-British Avon motorcycle tyre brand. Sumitomo has owned the Dunlop motorcycle tyre brand in North America since 2015. The exit will eventually see Sumitomo paying about $70m for Dunlop’s outstanding tyre inventory. Goodyear had wanted to raise more than $2bn from disposals. However, the sale of Dunlop has pulled in only a little over one third of this total.
Goodyear chief executive officer and president Mark Stewart called the sale of Dunlop “another important milestone” in the implementation of the Goodyear Forward transformation plan. “We are optimising our portfolio and reducing leverage to drive sustainable and substantial shareholder value creation,” he said.
“Not only does the transaction deliver significant value for our shareholders, but it also better positions Goodyear to enhance our focus on the growth of our core brands. Our team conducted a comprehensive process focused on maximising value for Goodyear through a divestment of our Dunlop brand, and we are very pleased with the outcome achieved.”