Gemspring Capital has agreed to acquire the synthetic rubber business of Goodyear Tire & Rubber Company for approximately $650m, marking a major carve-out transaction in the chemicals sector.

The deal includes Goodyear’s manufacturing sites in Houston and Beaumont, Texas, as well as its R&D centre in Akron, Ohio. As part of the agreement, Goodyear will maintain its operations in Niagara Falls, New York, and Bayport, Texas, retaining production rights for antioxidant and specialty chemicals.

This transaction forms a key element of Goodyear’s broader transformation plan, launched in 2023, which targets $1bn in cost savings by year-end and aims to unlock $2bn in proceeds through portfolio streamlining. The sale of the chemicals business follows recent divestments of the company’s off-the-road tyre and Dunlop operations.

Upon deal completion, expected in late 2025, Gemspring will appoint Tesham Gor – currently an executive advisor at the firm – as CEO of the standalone chemicals entity.

“As a standalone entity, the business will be well positioned to accelerate product development, expand its global relationships, and drive innovation through technical and operational excellence,” said Gor.

Goodyear Chemicals supplies synthetic rubber and polymers used in tyres, medical devices, packaging, and consumer goods. The divestment underscores growing private equity interest in high-performance materials platforms with diversified end-market exposure and R&D capabilities.

Source: Manufacturing Dive

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