The transaction is subject to customary approvals and is expected to close mid-year.
The total estimated fair value of the joint venture is expected to be approximately $600 million, according to a Goodyear 8K filing with the Securities and Exchange Commission.
The parties estimated start-up costs will be approximately $40 million and will be shared equally. These costs are related primarily to information technology infrastructure, initial staffing requirements, and other administrative costs, Goodyear said.
The creation of TireHub comes four months after Michelin North America Inc. (MNA) and Sumitomo Corp. of Americas (SCOA) agreed to combine Michelin's wholesale distribution activities with TBC Corp.'s wholesale assets into a 50-50 joint venture, to be called National Tire Wholesale (NTW).
The new distribution company will complement both companies' networks of existing third-party distributors and provide a fully integrated distribution, warehousing, sales and delivery solution following completion of the transaction, the parties said.
The partners stressed that TireHub will help provide them with the resources to help their customers manage growing complexity in the tire business, driven by SKU proliferation and rapidly growing demand for larger rim diameter premium tires.
"It's critical for U.S. tire dealers and retailers to be able to get the right tires on time to meet the needs and expectations of their customers," said TJ Higgins, president, integrated consumer tire group, U.S. and Canada, Bridgestone Americas.
"TireHub will help position dealers to win in today's dynamic and increasingly complex environment by giving them much needed access to a deeper and broader range of passenger and light truck tires from Bridgestone," he said.
At launch, TireHub will have the scale to reach the vast majority of retail locations in the U.S. daily, the partners said.