Gemspring Carves Out Goodyear Chemical for $650 Million

Gemspring Capital Management has agreed to acquire Goodyear Chemical, the polymer chemicals division of publicly traded Goodyear Tire & Rubber Company, for $650 million in cash.

Akron-headquartered Goodyear Chemical is a producer of synthetic rubber and polymer-based chemical products—polybutadiene rubber, polyisoprene rubber, styrene-butadiene rubber (SBR), acetone, and hydroquinone—used by companies in the tire manufacturing, medical devices, adhesives, sporting goods, thermoset plastics, and food packaging sectors.

Gemspring’s acquisition of Goodyear Chemical includes operating plants in Houston and Beaumont, Texas, as well as a research and development center in Akron, Ohio. Detailed financial information on Goodyear Chemical is not publicly available, but in 2023, it was reported that the division had annual sales of approximately $1 billion, split evenly between external customers and Goodyear itself.

Tesham Gor, a Gemspring Executive Advisor, is expected to become CEO of the business upon the closing of the transaction, which is anticipated by the end of the fourth quarter.

“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,” said Mr. Gor. “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.”

Goodyear, headquartered in Akron, Ohio, is one of the world’s largest tire companies. It employs about 64,000 people and manufactures products in 47 facilities across 21 countries.

“We look forward to unlocking the full potential of Goodyear Chemical as a standalone business and supporting its next chapter of growth and innovation,” said Mathew Wallace, a managing director at Gemspring. “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.”

Gemspring, based in Westport, Connecticut, invests in companies with revenues of up to $500 million and focuses on sectors including aerospace and defense, business and consumer services, financial and insurance services, industrial services, software and tech-enabled services, healthcare services, and specialty manufacturing.

In January 2023, Gemspring closed two funds: Gemspring Capital Fund III LP, its third buyout fund, at $1.7 billion, and Gemspring Growth Solutions Fund I LP, its first non-control investment fund, at an oversubscribed $400 million. With these closings, the firm now manages $3.4 billion in capital.

Piper Sandler served as the financial advisor to Goodyear on this transaction.

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