Gemspring Capital to Acquire Goodyear Chemical

Whats Happening:

Gemspring Capital Management, LLC, a middle-market private equity fund, has entered into a definitive agreement to acquire The Goodyear Tire & Rubber Company's polymer chemicals business. The acquisition includes two operating plants in Texas and a research and development facility in Ohio. Goodyear will retain its Chemical facilities in New York and Texas, as well as its rights to the products produced at those facilities.

Key Moves:

• Gemspring Capital to acquire Goodyear's polymer chemicals business

• Acquisition includes two plants in Texas and an R&D facility in Ohio

• Goodyear retains certain chemical facilities and product rights

By The Numbers:

• Gemspring Capital manages $3.8 billion of capital

• Gemspring targets companies with up to $2.0 billion in revenue

• The transaction is expected to close by late 2025

Key Quotes:

• "We look forward to unlocking the full potential of Goodyear Chemical as a standalone business and supporting its next chapter of growth and innovation," - Mathew Wallace, Managing Director at Gemspring

• "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," - Tesham Gor, expected CEO of the Business

Bottom Line:

Gemspring Capital's acquisition of Goodyear's polymer chemicals business represents a significant move in the chemical industry. This transaction allows Gemspring to expand its portfolio in the synthetic rubber market, while providing Goodyear Chemical with the opportunity to grow as a standalone entity. The deal highlights Gemspring's strategy of investing in middle-market companies with growth potential.

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