Goodyear announced that it has signed a definitive agreement to sell the Dunlop brand, comprising trademarks and intangible assets necessary for operations of the brand business in Europe, North America and Oceania for consumer, commercial and other specialty tires, together with certain associated intellectual property, to Sumitomo Rubber Industries (SRI).

SRI will pay Goodyear approximately $701 million for the transfer of the Dunlop brand, a “transition fee” for support in transitioning the Dunlop brand to SRI, and the purchase of Dunlop tire inventory, according to a news release. The transaction also provides for additional ongoing offtake, licensing and other arrangements.

“This is another important milestone as we continue to execute against our Goodyear Forward transformation plan. We are optimizing our portfolio and reducing leverage to drive sustainable and substantial shareholder value creation,” said Mark Stewart, Goodyear chief executive officer and president, in a release.

The transaction is subject to regulatory approvals, other closing conditions and consultations and is expected to close by mid-2025.