Gemspring Capital Management, a middle-market private equity firm, has announced that an affiliate has completed the acquisition of tyre maker Goodyear Tire & Rubber Company’s polymer chemicals business, for a purchase price of US$650 million, subject to adjustments. At the time of closing, Goodyear received cash proceeds of approximately US$580 million, which reflects working capital adjustments, including an adjustment for intercompany receivables.
This move sets up Goodyear for a sharper chemicals focus and signals growth potential for the spun-off business under new leadership.
The acquisition includes two manufacturing plants in Houston and Beaumont, Texas, as well as a R&D facility in Akron, Ohio. Goodyear will retain its chemical facilities in Niagara Falls, New York, and Bayport, Texas, along with the rights to products produced at those locations.
Headquartered in Ohio, the Polymer Chemical Business is a producer of synthetic rubber with a broad product portfolio serving customers across North America. The company supports an extensive base of world-class customers, including many of the leading tyre manufacturers, and delivers differentiated solutions across diverse end markets such as food, medical, sporting goods, thermoset plastics, adhesives, and packaging.
“With the sale of our Chemical business, we have completed all of the planned asset sales included in our Goodyear Forward transformation program,” said Goodyear CEO/President Mark
Stewart. “Additionally, we surpassed initial expectations, with total gross proceeds from the divestitures of approximately US$2.2 billion,” he added.
Goodyear intends to use transaction proceeds for debt reduction and to fund initiatives in connection with the Goodyear Forward transformation plan
Mathew Wallace, Managing Director at Gemspring, commented, “We look forward to unlocking the company’s full potential as a standalone business and supporting its next chapter of growth and innovation. We see ample opportunity to expand the company’s offering by strengthening its capabilities in synthetic rubber markets and expanding into adjacent chemical categories, both organically and through strategic acquisitions. These opportunities will be made possible by the Company’s talented employees, strong customer relationships, and dedicated suppliers.”