Goodyear, Bridgestone To Form JV For Tire Distribution In US
Zacks Investment Research | Apr 17, 2018 08:30AM ET
The Goodyear Tire & Rubber Company (NASDAQ:GT) announced that it is entering a 50-50 joint venture (JV) with Bridgestone Americas, Inc. (Bridgestone), which is the U.S. subsidiary of Bridgestone Corporation (OTC:BRDCY) , to form the largest tire-distribution network in the United States. TireHub LLC, the new JV, will offer a complete range of light-truck and passenger-vehicle tires with primary importance on fulfilling the rising demand for larger rim-diameter premium tires. Anticipated to close during mid-2018, the transaction is subject to customary approvals.
The new JV will unite Goodyear's wholesale distribution network with Bridgestone’s Tire Wholesale Warehouse (“TWW”). The transaction will allow Goodyear and Bridgestone to develop their individual tire businesses and benefit from the enhanced value of their respective brands. Further, the new JV will offer on-demand access to Goodyear’s and Bridgestone’s complete range of tires to customers, who have limited space at their locations. Also, it will help the customers of Goodyear and Bridgestone to manage increasing complexity of tire business, primarily due to SKU proliferation.
To be headquartered in Atlanta, TireHub will begin operations with roughly 80 warehouse locations and distribution centers in the United States. Further, the new entity will complement the existing third-party distributors’ network of Goodyear and Bridgestone and supply fully integrated distribution, warehousing, sales and delivery solutions, soon after the completion of the transaction.
The Goodyear Tire & Rubber Company Price and Consensus
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.