Latest news with #GemspringCapital
Yahoo
23-05-2025
- Automotive
- Yahoo
Goodyear set to deliver on divestment plan after it strikes deal to sell synthetic rubber business
The largest U.S. manufacturer of tires for car companies will sell the majority of its Goodyear Chemical arm to private equity firm Gemspring Capital in a deal expected to be finalized late this year. The $650 million in gross proceeds comes on top of the $1.6 billion it achieved from the sale of two other businesses earlier this year, reaching a key target from its Goodyear Forward restructuring plan. Goodyear is close to closing the books on its divestment plan after the world's third largest tire maker by volume struck a deal to sell most of its synthetic rubber business for $650 million in cash. In 2023, the Fortune 500 company had agreed with activist shareholder Elliott Investment Management to sell off a trio of businesses with the goal of raising over $2 billion to pay down debt under its Goodyear Forward restructuring plan. That target will now be reached after it completed the disposal of its Dunlop brand and off-highway tire operations in two separate transactions earlier this year that already raised a combined $1.6 billion in gross proceeds. 'With the sale of our chemical business, we continue to demonstrate our commitment to optimizing our portfolio and creating shareholder value,' CEO Mark Stewart said in a statement on Thursday. Stock in Goodyear has outperformed the S&P 500, rising 25% year to date versus minor declines in the benchmark U.S. equity index. The majority of its synthetic rubber activities will then be handed to private equity firm Gemspring Capital toward the end of this year. Goodyear will, however, retain facilities in Niagara Falls, N.Y., and Bayport, Texas, as well as the rights to the products made there. The transaction includes a long-term supply agreement to ensure Goodyear has access to the necessary raw materials for its tires, where it competes with larger rivals Michelin of France and Japan's Bridgestone. Half of Goodyear Chemical's roughly $1 billion in annual revenue is generated internally. 'We will work closely with Gemspring to help ensure a smooth transition for our associates, customers, and suppliers,' Stewart added. The divestments, which will raise $2.2 billion in total, are a core pillar of its turnaround plan that was designed to be completed by the end of 2025. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-04-2025
- Business
- Yahoo
NJ Governor Signs Bill Tightening Retail Crime Penalties
New Jersey is the latest state to crack down on crimesters. Governor Phil Murphy on Tuesday signed a bill that makes it easier for the state to penalize repeat retail crime offenders and suppress gift card fraud. It also requires the state's attorney general to take additional measures to curb organized retail crime (ORC), which could mean creating a new theft-focused task force or working with law enforcement and retailers on a different initiative. More from Sourcing Journal Q&A: How Can AI Systems Prevent and Record Retail Theft and Fraud? California's Organized Retail Crime Task Force Recovered $13.5M in Stolen Merchandise Last Year Gemspring Capital Acquires Loss Prevention Tech Provider Appriss Retail The law makes New Jersey one of more than a dozen states that have sought to tighten penalties for retail crime, including its neighbors, New York and Pennsylvania. The bill stipulates that those caught repeatedly perpetuating retail crime offenses can be sentenced to 'an extended prison term,' and allows that greater total value of stolen merchandise can translate to a more severe charge. That type of strategy has also been used in other states, like Florida, where Governor Ron DeSantis signed a bill last spring that created harsher penalties for those stealing from retailers or engaging in porch piracy. The bill also targets aggressive perpetrators, upgrading the charge from simple assault to aggravated assault if a crimester attacks a retail employee 'engaged in the performance of their duties.' Murphy said he chose to sign the bill, which passed unanimously in the state's legislature, in an attempt to protect consumers, businesses and retail employees alike. 'No business owner or retail worker should have to fear for their safety or endure the financial loss caused by organized retail theft,' Murphy said in a statement. 'Over the past few years, we have worked to crack down on organized retail theft, which threatens livelihoods and public safety. With today's bill, we are taking decisive action to combat this growing threat and protect businesses and workers statewide.' State Senator John Burzichelli and Assemblyman Joe Danielsen proposed the legislation. Burzichelli said he expects that it will save consumers money on day-to-day purchases, since afflicted retailers won't have to pass the cost of repurchasing or recovering stolen goods along to their consumers, particularly in the case of small retailers. He argued that it will also help stymie the amount of unsafe, unregulated goods floating around in the resale market, which could potentially harm consumers. 'This law will help fight the retail crime rings that operate on a much larger scale than individual shoplifters who take products for personal use. These are professional shoplifters backed by criminal organizations that plan large-scale thefts and fence the products on the gray market, often selling across state lines or through the internet. It's grown into a billion-dollar criminal enterprise that costs the average family an estimated $500 a year,' Burzichelli said in a statement. 'This is a true consumer protection law that will help safeguard the public's health and save consumers money.' The state's bill has received support from various trade groups, unions and organizations across the state, including the New Jersey Retail Merchants Association, the New Jersey Business & Industry Association and the New Jersey State Chamber of Commerce. Michael Egenton, executive vice president of the New Jersey Chamber of Commerce, said the industry is glad to see the law signed by Murphy. 'This legislation will help curb large-scale theft operations that not only endanger retail workers but also drive up costs for hardworking New Jersey families. Strengthening penalties and enforcement tools is essential to ensuring the safety of our communities and the stability of our local economy. We applaud the bipartisan leaders who championed this bill and thank Governor Murphy for taking action to address this urgent issue,' Egenton said in a statement.
