Sumitomo Rubber Industries, Ltd. have signed a Purchase Agreement to acquire the DUNLOP trademark and other rights for four-wheel tyres in Europe, North America and Oceania from The Goodyear Tire & Rubber Company. The acquisition price is US$526 million (JPY 82.6 billion)
With the acquisition of this trademark right, except for certain regions and products, they will be able to operate their tyre business globally under the DUNLOP brand.
Looking ahead, DUNLOP aims to establish itself as a premium tyre brand in the global market. By leveraging their rich heritage and strong brand recognition, they will set ourselves apart from competitors through innovative products that integrate cutting-edge technologies in addition to meeting the evolving needs of the next-generation mobility society. Specifically, the company will focus on new products that incorporate their innovative “Active Tread” technology, OE tyres for premium vehicles, and motor sports.
In addition, for the FALKEN brand, which has been deployed in Europe, North America, and Oceania, they will utilise the product planning and marketing capabilities they have cultivated in each region to focus on bold, one-of-a-kind products that appeal to its core fanbase. Through a dual-brand approach to business development, they aim to increase sales volume in each region and raise the proportion of premium products.
Furthermore, they will position DUNLOP as their core brand and advance their brand strengthening activities as a joint effort between their tyre and sports businesses. By accelerating brand investment in motorsports and global marketing activities in tennis, they will increase the value of the DUNLOP brand around the world and develop it into the brand of choice for customers.
US$ 1 = JPY 157
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.
Excludes India, Malaysia, Singapore and Brunei for four-wheel tyres. Excludes India, Europe and Oceania for motorcycle tyres.
Newly launched next-generation all-season tyres 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.
Differentiated products as defined by the Company, SUV tyres and tyres 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 tyres 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 maximise 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 realise our purpose: “Through innovation we will create a future of joy and well-being for all.”
Source: Tyretradenews
