Investment firm KKR has entered into an agreement to acquire a controlling stake in Alliance Tire Group (ATG) from an affiliate of Warburg Pincus.
Yogesh Mahansaria, founder of ATG, will continue to maintain an ownership stake in the company and partner with KKR to continue to grow the business.
Terms of the transaction have not been disclosed.
The transaction is subject to customary closing conditions, including receipt of regulatory and third-party consents.
Employing more than 2,500 people worldwide, ATG is a developer, manufacturer and supplier of a wide range of off-highway tyres, catering primarily to the agricultural, forestry and construction industries. ATG’s tyres are manufactured at dedicated facilities in Israel and India, with R&D facilities in Israel, India, the US and South Africa. The company’s products are available in more than 120 countries, and it sells under the brand names Alliance, Galaxy and Primex.
“We would be delighted to have KKR as our new incoming partner. Our team is impressed by KKR’s franchise and its strong track record. KKR’s investment will enable us to continue to expand into new markets, make strategic acquisitions, and help scale our global presence,” says Mahansaria. “We would also like to thank Warburg Pincus for its support during the past six years as it helped create and build ATG into the global industry leader that it is today.”
“ATG is a leader in an attractive industry with strong underlying growth drivers. We are thrilled to be partnered with Yogesh and his management team and look forward to leveraging our global network to support their continued growth,” says Sanjay Nayar, member of KKR and head of KKR India.
“From funding the initial acquisition of Israel-based Alliance Tire Company to the development of a global player in the off-highway tire sector, our partnership with Yogesh and the entire ATG management team has been an extremely successful one. We are confident that ATG’s success will continue with its new partners,” says Vishal Mahadevia, managing director and co-head of Warburg Pincus India.
KKR’s investment in ATG is being made through KKR’s investment funds and will be supported by a financing tranche led by Crescent Mezzanine with additional participation by the Ivy High Income Fund. Credit Suisse served as the financial advisor to ATG and Nine Rivers Capital advised the Founders. Barclays Bank PLC and JP Morgan served as advisers to KKR for this transaction.
