AKRON, Ohio — The Goodyear Tire & Rubber Company announced it signed an agreement to sell the majority of its Goodyear Chemical business to Gemspring Capital Management, LLC. 

This is part of the company's Goodyear Forward transformation plan, officials said in a release.

Gemspring will pay Goodyear $650 million at closing for Goodyear Chemical, which is a leading producer of synthetic rubber, according to a release. The deal includes the Goodyear Chemical facilities in Houston and Beaumont, Texas, as well as a related research office in Akron, Ohio. 

"With the sale of our chemical business, we continue to demonstrate our commitment to optimizing our portfolio and creating shareholder value," said Goodyear Chief Executive Officer and President Mark Stewart in a release. "We are grateful to our Goodyear Chemical associates who have driven the success of this business. We will work closely with Gemspring to help ensure a smooth transition for our associates, customers and suppliers."

The transaction is subject to regulatory approval, along with other closing conditions. The deal is expected to close late this year. 

Goodyear said it will retain its chemical facilities in Niagara Falls, N.Y.; Bayport, Texas; and the rights to products made in the facilities.