The Carlyle Group, a District-based private equity firm, announced Wednesday that it has reached a deal to acquire the Goodyear Tire and Rubber Company’s engineered products division.
Carlyle has agreed to pay $1.48 billion for the Goodyear division, which manufacturers conveyor belts, hoses and power transmission belts, as well as tank tracks for off-road and military vehicles.
The division has $1.5 billion in annual sales to 4,500 customers around the world.
“We are extremely excited about this unique opportunity,” Carlyle Group Managing Director Daniel Pryor said. “Goodyear Engineered Products served markets offer many opportunities for growth, both in the [United States] and internationally, and the company has achieved leading positions under Goodyear’s ownership. We look forward to working with Goodyear Engineered Products’ management and employees, as well as the United Steelworkers, to further build the business off this strong base.”
The Carlyle Group has more than $56 billion under management. It specializes in leveraged buyouts and venture capital investments.
The Goodyear division will remain in Akron, Ohio, with Chief Executive Officer Timothy Toppen retaining his leadership.
