Goodyear has announced the sale of its Dunlop brand to Japan’s Sumitomo Rubber Industries (SRI) for USD 701 million as part of its “Goodyear Forward” transformation plan. According to the official statement, the deal includes the transfer of trademarks and other key assets related to Dunlop’s operations in Europe, North America, and Oceania, covering consumer, commercial, and specialty tires.
The total payment from SRI consists of three parts: USD 526 million for the Dunlop brand and intellectual property, a USD 105 million transition fee, and approximately USD 70 million to purchase existing Dunlop tyre stock.
Additionally, under a transition license agreement, Goodyear will continue to manufacture, sell, and distribute Dunlop-branded consumer tires in Europe until at least December 31, 2025, with the possibility of extending until the end of 2026. During this time, Goodyear will pay royalties to SRI but retain the profits from these sales.
Once the transition license agreement (TLA) is finalized, Goodyear will supply specific Dunlop-branded tires to SRI in Europe for five years under a transition offtake agreement (TOA). This agreement sets a minimum purchase of 4.5 million tires annually on a take-or-pay basis.
SRI can choose to terminate the TOA after the third year with a 12-month notice, but this will be subject to a termination fee. The TOA ensures that Goodyear receives an agreed-upon markup on the total costs, including raw materials, for each tire sold.
Additionally, Goodyear will license the Dunlop trademarks back from SRI for commercial truck tires in Europe on a long-term basis, with a royalty on sales. Goodyear retains the right to terminate this licensing agreement at any point during the licensing period.
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