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Gemspring Capital to Acquire Goodyear Chemical

1. Gemspring Capital acquires Goodyear's polymer chemicals business. 2. Transaction includes key plants in Texas and a facility in Ohio. 3. Goodyear retains other chemical facilities and product rights. 4. Gemspring aims to enhance growth and innovation for Goodyear Chemical. 5. Transaction expected to finalize by late 2025, pending regulatory approval.

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FAQ

Why Bullish?

The acquisition indicates a strategic shift, potentially increasing GT's market value. Historical acquisitions of similar businesses often lead to enhanced operational efficiencies and revenue growth.

How important is it?

The acquisition signifies significant operational changes and possible revenue growth, impacting investor sentiment positively. As Goodyear Chemicals operates in diverse markets, the deal presents numerous pathways for future growth.

Why Long Term?

The full impact of the acquisition may take time to materialize, with growth potential unfolding beyond immediate term after late 2025. Previous related transactions in this sector have shown improved performance over several quarters post-completion.

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, /PRNewswire/ -- Gemspring Capital Management, LLC ("Gemspring"), a middle-market private equity firm, is pleased to announce that an affiliate has entered into a definitive agreement to acquire The Goodyear Tire & Rubber Company's (NASDAQ: GT) ("Goodyear" or the "Company") polymer chemicals business ("Goodyear Chemical" or the "Business"). The acquisition includes two operating plants located in Houston and Beaumont, Texas, and a research and development facility located in Akron, Ohio. Goodyear will retain its Chemical facilities in Niagara Falls, New York, and Bayport, Texas, and its rights to the products produced at such facilities. Goodyear Chemical, headquartered in Akron, Ohio, is a leading producer of synthetic rubber, offering a broad product portfolio in North America. The Business serves a broad array of world-class customers, including many of the world's leading tire manufacturers. Beyond tires, Goodyear Chemical's products deliver differentiated solutions across a diverse set of end markets, such as food, medical, sporting goods, thermoset plastics, adhesives, packaging, and many other consumer and industrial applications. Mathew Wallace, Managing Director at Gemspring, remarked: "We look forward to unlocking the full potential of Goodyear Chemical as a standalone business and supporting its next chapter of growth and innovation. Goodyear Chemical is an industry leader, underpinned by deep customer relationships, a mission-critical product portfolio, a track record of innovation, and incredibly talented employees. We are grateful to the Goodyear team who have driven the success of the business to date and are committed to working closely with Goodyear to ensure a smooth transition for associates, customers, and suppliers." Tesham Gor, a Gemspring Executive Advisor who is expected to become Chief Executive Officer of the Business, added: "We are excited to advance Goodyear Chemical's industry positioning by leveraging our strategic, financial, and industry expertise to continue delivering world-class elastomer technologies and engineered solutions to our customers. As a standalone entity, the Business will be well positioned to accelerate product development, expand its relationships with existing and new customers globally, deliver sustainable solutions, continue to invest in its people, and drive growth and innovation through commercial, technical, and operational excellence." The transaction is subject to regulatory approval, as well as other customary closing conditions and is expected to close by late 2025. Piper Sandler & Co. acted as lead financial advisor, Greenhill & Co. served as a financial advisor, and Kirkland & Ellis LLP served as legal counsel to Gemspring on the transaction. About Gemspring CapitalGemspring Capital, a Westport, Connecticut-based private equity firm with $3.8 billion of capital under management, provides flexible capital solutions to middle market companies. Gemspring partners with talented management teams and takes a partnership approach to helping drive revenue growth, value creation and sustainable competitive advantages. Target companies have up to $2.0 billion in revenue and are in the business services, consumer services, financial and insurance services, healthcare, industrial, software, and tech-enabled services sectors. For more information, visit www.gemspring.com. Contact: Mathew Wallace, [email protected] SOURCE Gemspring Capital WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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