In the final stages of last year, Dunlop announced the closure of its factory in New York. The brand, owned by Sumitomo and Goodyear, justified this decision with the objective of reducing costs, although this decision means the dismissal of 1,500 factory employees. Likewise, Dunlop then explained that it will transfer the production that until now was carried out there to different factories that it owns both in Japan and in the rest of the planet.
Sumitomo acquires Dunlop for $701 million
Just a month and a half after the news, today we can confirm that Sumitomo Rubber Industries will take over 100% of Dunlop’s assets after reaching a purchase agreement with its until now partner Goodyear. To do this, the Japanese brand will have to pay the American brand a total of 70 million dollars, about 683 million euros at the current exchange rate.
In the statement issued by Goodyear in relation to its agreement with Sumitomo, it is specified that: “Goodyear to supply Dunlop tires to Sumitomo Rubber Industries under five-year transition agreement in Europe”. On the other hand, as explained Mark Stewart, CEO and president of Goodyear:
“This is another important milestone in our Goodyear Forward transformation plan. We are optimizing our portfolio and reducing leverage to drive the creation of substantial and sustainable value for shareholders. “The transaction not only delivers significant value for our shareholders, but also better positions Goodyear to enhance our focus on growing our core brands.”
For its part, Christina Zamarroexecutive vice president and chief financial officer of the brand, clarifies about the agreement with Sumitomo: “Our team carried out a comprehensive process focused on maximizing the value of Goodyear through the divestment of our Dunlop brand, and we are very pleased with the result obtained. “We are committed to working closely with SRI to ensure a seamless transition for Dunlop brand customers.”
Finally, it is worth clarifying that this transaction is subject to regulatory approvals, other customary closing conditions and consultations, and Goodyear-Sumitomo deal expected to close in mid-2025.
Goodyear intends to use the proceeds from the transaction to reduce leverage and fund initiatives related to the company’s transformation plan.
