Global investment firm KKR today announced it has entered into an
agreement to acquire a controlling stake in Alliance Tire Group (“ATG”
or “Company”), a global tire maker specializing in producing off-highway
tires, 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 were not 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 global developer,
manufacturer and supplier of a wide range of off-highway tires, catering
primarily to the agricultural, forestry and construction industries.
ATG's tires are manufactured at dedicated facilities in Israel and
India, with R&D facilities in Israel, India, the United States 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” said Mr.
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,” said 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,” said 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 advisors to KKR
for this transaction.
About Alliance Tire Group
Employing more than 2,500 people
worldwide, ATG is a global developer, manufacturer and supplier of a
wide range of off-highway tires, catering primarily to the agricultural,
forestry and construction industries. ATG's tires are manufactured at
dedicated facilities in Israel and India, with R&D facilities in Israel,
India, the United States 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.
About KKR
Founded in 1976 and led by Henry Kravis and George
Roberts, KKR is a leading global investment firm with $75.5 billion in
assets under management as of December 31, 2012. With offices around the
world, KKR manages assets through a variety of investment funds and
accounts covering multiple asset classes. KKR seeks to create value by
bringing operational expertise to its portfolio companies and through
active oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with fund investors
through its client relationships and capital markets platform. KKR & Co.
L.P. is publicly traded on the New York Stock Exchange (NYSE:KKR), and
“KKR,” as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment
vehicles, as appropriate.
About Warburg Pincus
Warburg Pincus LLC is a leading global
private equity firm focused on growth investing. The firm has more than
$30 billion in assets under management. Its active portfolio of more
than 125 companies is highly diversified by stage, sector and geography.
Warburg Pincus is an experienced partner to management teams seeking to
build durable companies with sustainable value. Founded in 1966, Warburg
Pincus has raised 13 private equity funds, which have invested more than
$40 billion in over 650 companies in more than 30 countries.
The firm is headquartered in New York with offices in Amsterdam,
Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai,
San Francisco, São Paulo and Shanghai. For more information, please
visit www.warburgpincus.com.
Forward-Looking Statements
This release contains certain
forward-looking statements. Forward-looking statements relate to
expectations, beliefs, projections, future plans and strategies,
anticipated events or trends and similar expressions concerning matters
that are not historical facts. Without limiting the foregoing,
statements regarding the acquisition of ATG and the resulting combined
business may constitute forward-looking statements. Such statements are
subject to the risk that the terms of such transaction may be modified,
the transaction may not be completed at all or the benefits and
synergies from such transactions are not realized. The forward-looking
statements are based on the beliefs, assumptions and expectations of the
parties referenced herein, taking into account all information currently
available to them. These beliefs, assumptions and expectations can
change as a result of many possible events or factors, not all of which
are known to these parties or are within their control. None of the
parties undertakes any obligation to update any forward-looking
statements to reflect circumstances or events that occur after the date
on which such statements were made except as required by law.