Yokohama Rubber has agreed to acquire Goodyear Tire & Rubber’s off-the-road tire business for $905 million as part of the Japanese manufacturer’s global expansion plan.
The OTR business will be a future growth driver, Yokohama Rubber said in a statement about the acquisition Monday. In a separate statement, Goodyear said it will retain the part of the business that provides OTR tires for U.S. military and defense applications. The transaction could be completed by early 2025, Goodyear said.
Yokohama Rubber had been in advanced talks with Goodyear for the OTR business after other suitors dropped out, Bloomberg News reported earlier this month. Japanese companies have been stepping up deals in industries ranging from industrials to health care and technology, buying assets overseas to help diversify and expand amid sluggish growth at home.
Yokohama Rubber’s products include tires for passenger cars, trucks and buses, as well as industrial vehicles. OTR tires are used in industries such as mining. The company’s other products include conveyor belts, rubber plates and marine fenders, as well as golf-related equipment. Yokohama Rubber’s stock fell 1.6% in Tokyo on Monday.
Akron, Ohio-based Goodyear said in November it was pursuing alternatives for its chemical business, Dunlop brand and OTR unit, with the aim of raising at least $2 billion. The company named it the “Goodyear Forward” plan.