Acquisition of DUNLOP Trademark and Other Rights from Goodyear for four-wheel tires in Europe, North America, and Oceania - Advancing premiumization globally through differentiated products and enhancing brand strength through collaboration with sports business -
Jan. 08. 2025
Sumitomo Rubber Industries, Ltd. signed a Purchase Agreement on January 8th in Japan Standard Time (January 7th in US time) to acquire the DUNLOP trademark and other rights for four-wheel tires in Europe, North America and Oceania from The Goodyear Tire & Rubber Company (hereinafter "Goodyear"). The acquisition price is US$526 million (JPY 82.6 billion*1)*2.
With the acquisition of this trademark right, except for certain regions and products*3, we will be able to operate our tire business globally under the DUNLOP brand.
Looking ahead, DUNLOP aims to establish itself as a premium tire brand in the global market. By leveraging our rich heritage and strong brand recognition, we will set ourselves apart from competitors through innovative products that integrate cutting-edge technologies in addition to meeting the evolving needs of the next-generation mobility society. Specifically, the company will focus on new products that incorporate our innovative "Active Tread"*4 technology, OE tires for premium vehicles, and motor sports.
In addition, for the FALKEN brand, which has been deployed in Europe, North America, and Oceania, we will utilize the product planning and marketing capabilities we have cultivated in each region to focus on bold, one-of-a-kind products that appeal to its core fanbase. Through a dual-brand approach to business development, we aim to increase sales volume in each region and raise the proportion of premium products*5.
Furthermore, we will position DUNLOP as our core brand and advance our brand strengthening activities as a joint effort between our tire and sports businesses. By accelerating brand investment in motorsports and global marketing activities in tennis, we will increase the value of the DUNLOP brand around the world and develop it into the brand of choice for customers.
■Comment from President and CEO Satoru Yamamoto
Our group has a history of acquiring DUNLOP in various countries in the 1980s and producing and selling DUNLOP brand tires in Europe and North America in addition to Japan. It has been a great opportunity for our group to be able to use the DUNLOP brand globally, and we are delighted that this acquisition has enabled us to use the DUNLOP brand almost all over the world.
Going forward, we will maximize the potential of the DUNLOP brand, not only in the new regions where we have acquired rights, but also in existing regions, and further accelerate our efforts to realize our purpose: "Through innovation we will create a future of joy and well-being for all."
■Overview of Goodyear
・Special meeting held on January 8th
With the acquisition of this trademark right, except for certain regions and products*3, we will be able to operate our tire business globally under the DUNLOP brand.
Looking ahead, DUNLOP aims to establish itself as a premium tire brand in the global market. By leveraging our rich heritage and strong brand recognition, we will set ourselves apart from competitors through innovative products that integrate cutting-edge technologies in addition to meeting the evolving needs of the next-generation mobility society. Specifically, the company will focus on new products that incorporate our innovative "Active Tread"*4 technology, OE tires for premium vehicles, and motor sports.
In addition, for the FALKEN brand, which has been deployed in Europe, North America, and Oceania, we will utilize the product planning and marketing capabilities we have cultivated in each region to focus on bold, one-of-a-kind products that appeal to its core fanbase. Through a dual-brand approach to business development, we aim to increase sales volume in each region and raise the proportion of premium products*5.
Furthermore, we will position DUNLOP as our core brand and advance our brand strengthening activities as a joint effort between our tire and sports businesses. By accelerating brand investment in motorsports and global marketing activities in tennis, we will increase the value of the DUNLOP brand around the world and develop it into the brand of choice for customers.
| *1 | US$ 1 = JPY 157 |
| *2 | An additional payment of US$105 million as transition support fee for transition support such as facilitating the transition of DUNLOP customers in Europe to us, as well as the purchase price for inventory and other at the time of closing. |
| *3 | Excludes India, Malaysia, Singapore and Brunei for four-wheel tires. Excludes India, Europe and Oceania for motorcycle tires. |
| *4 | Newly launched next-generation all-season tires that work on any road surface - First round of products to feature "Active Tread," a new technology where the property of the rubber actively changes in response to moisture and temperature to suit road conditions - (Release issued on July 22, 2024 in Japanese): https://www.srigroup.co.jp/newsrelease/2024/sri/2024_058.html |
| *5 | Differentiated products as defined by the Company, SUV tires and tires for passenger cars with 18 inches or more. |
■Comment from President and CEO Satoru Yamamoto
Our group has a history of acquiring DUNLOP in various countries in the 1980s and producing and selling DUNLOP brand tires in Europe and North America in addition to Japan. It has been a great opportunity for our group to be able to use the DUNLOP brand globally, and we are delighted that this acquisition has enabled us to use the DUNLOP brand almost all over the world.
Going forward, we will maximize the potential of the DUNLOP brand, not only in the new regions where we have acquired rights, but also in existing regions, and further accelerate our efforts to realize our purpose: "Through innovation we will create a future of joy and well-being for all."
■Overview of Goodyear
| Company name | ： The Goodyear Tire & Rubber Company |
| URL | ： https://corporate.goodyear.com/us/en.html |
| Head Office Location | ： 200 Innovation Way, Akron, Ohio, USA |
| Representative | ： Mark Stewart, CEO |
| Established | ： 1898 |
| Business Contents | ： Manufacture and sale of tires |
・Special meeting held on January 8th