Yokohama Rubber Co., has said it will buy 90 percent of Israel’s Alliance Tire Group (ATG) for $1.18 billion, controlled by private equity giant KKR.
Alliance was once on the brink of bankruptcy and KKR took a majority stake in the company, which is headquartered in the Netherlands, in 2013, for $500 million.
The acquisition is expected to be finalized on 1 July 2016, after completion of all necessary closing procedures, including regulatory approvals.
ATG has developed a highly specialized business in the manufacture and sale of tires for agricultural, industrial, construction and forestry machinery, While Yokohama Rubber does not currently manufacture or sell tires for agricultural or forestry machinery. The acquisition of ATG will strengthen Yokohama Rubber’s product lineup in commercial tires.
Also, Yokohama Rubber recently started production of truck and bus tires at a new plant in the U.S. state of Mississippi
Alliance tires in Israel is owned by India’s Alliance Tire Group (ATG), which manufactures and sells tires to 120 countries. 20percent of ATG’s operations are in Israel which leads in the development of innovative tires.
650 out of the company’s 3, 000 employees are in Israel with the remainder in India. Israel’s Isia Tchetchik has served as the company chairman since 2002.