Yokohama Rubber Co. to buy Alliance Tire Group.
When Tyre Times broke the news of Yokohama planning to buy Alliance Tire Group on March 7th, their still was an air of uncertainty to the news. However, it has now been confirmed that Yokohama Rubber Co has agreed to buy out Alliance Tire Group (ATG), controlled by US private equity giant KKR, for about Rs. 8000 Crore in one of the biggest private equity exits from an India-focused investment & one of the largest strategic investments so far this year.
The Japanese firm will acquire the 90% stake held by KKR and 10% of the Mahansaria family. The acquisition is expected to be concluded on July 1, 2016, Yokohama said in a statement on Friday.
The deal is part of Yokohama Rubber’s plans to expand its commercial tyres business, the Japanese firm said. “Yokohama Rubber does not currently manufacture or sell tyres for agricultural or forestry machinery. The acquisition will strengthen Yokohama Rubber’s product lineup in commercial tyres,” Yokohama said in the statement.
The demand for agricultural equipment tyres is expected to increase due to growing use of farm machinery, which is crucial to improving efficiency to meet rising global food needs.