KKR to Acquire Alliance Tire Group from Warburg Pincus

KKR to Acquire Alliance Tire Group from Warburg Pincus

AMSTERDAM & MUMBAI, India--(BUSINESS WIRE)-- 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.



Key Media Contacts:
For KKR
Kristi Huller
KKR (New York)
E: kristi.huller@kkr.com
or
Vaishnavi Ramakrishnan
Edelman India (for KKR India)
T: +91 77380 15770
E: Vaishnavi.ramakrishnan@edelman.com
or
Nicholas Worley
Hill+Knowlton Strategies Asia (for KKR Asia)
T: +852 2894 6313
E: Nicholas.worley@hkstrategies.com
or
Steve Okun
KKR (Singapore)
E: steven.okun@kkr.com
or
Mihir Mukherjee
Edelman India (for KKR India)
T: +91 99875 56960
E: Mihir.mukherjee@edelman.com
or
For Warburg Pincus
Ed Trissel or Jeff Smith
Warburg Pincus
212.878.0060
or
For Alliance Tire Group
Malini Roy
Citigate Dewe Rogerson
T: +91 9920549085
E: malini@cdr-india.com

KEYWORDS:   United States  Europe  Asia Pacific  North America  Netherlands  New York  South Africa  Africa  Middle East  India  Israel

INDUSTRY KEYWORDS:

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2359934, ~/Articles/ArticleHandler.aspx, 4/18/2014 10:50:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...