Yokohama Rubber has completed the acquisition of the Off-the-Road (OTR) tyre business from Goodyear for $905m in cash.

The acquisition forms part of Yokohama's medium-term management plan, Yokohama Transformation 2026, which aims for significant growth by expanding its off-highway tyre (OHT) product offerings.

The agreement, announced in July 2024, includes the transfer of all shares of Nippon Giant Tire and Goodyear Earthmover in Australia, along with other global assets.

Yokohama Rubber plans to integrate the acquired business into its consolidated results starting from the first quarter of 2025.

The company is currently assessing the impact of this acquisition on its consolidated earnings.

Yokohama expects the deal to enhance its product lineup with a range of mining and construction machinery tires and bring in advanced technologies, professional services, and “strong brand power”.

Goodyear plans to use the proceeds from the latest transaction to “reduce leverage” and invest in its Goodyear Forward transformation plan.

Goodyear CEO and president Mark Stewart said: “The sale of the OTR business is a significant milestone in Goodyear's transformation.

“Our portfolio is now more streamlined, driving further efficiencies and enhancing our focus on our core industry-leading products and services.”

Evercore served as the exclusive financial advisor, while Sullivan & Cromwell provided legal counsel to Goodyear in this transaction.