Goodyear Tire & Rubber said it had signed a definitive agreement to sell its off the Road (OTR) tyre business to Yokohama Rubber for US$905m in cash.

The deal followed a previously announced strategic review of the OTR tyre business in connection with a transformation plan.

The OTR business provides tyres worldwide for surface and underground mining, construction and quarry, and port and industrial end markets.

"The sale of the OTR business marks an important milestone as we continue to execute against our [transformation] plan," said Goodyear CEO Mark Stewart.

Goodyear will retain the business providing OTR tyres for US military and defence applications.

Under a product supply agreement to be entered into with Yokohama in connection with the closing of the transaction, Goodyear will manufacture some OTR tyres for Yokohama at some of its factories for an initial period of up to five years after the closing of the transaction.

The deal is subject to usual regulatory approvals and is expected to close by early 2025.

Goodyear intends to use proceeds to reduce leverage and fund initiatives in connection with the transformation plan.