After lengthy negotiations, The Harvey Brodsky Group has withdrawn its offer to purchase 51% of Hadera, Israel-based Alliance Tire & Rubber Co.
Brodsky Group head Harvey Brodsky cited instability in the Middle East and "Alliance's inability to restructure loans outstanding to Israel banks to (his organization's) satisfaction" as reasons for the withdrawal.
The Brodsky Group, which is composed of several partners, had planned to invest $50 million in Alliance, one-fifth of which would have been injected into the tiremaker "either as a shareholders' loan, or as an addition to the investment in the company's equity," Alliance officials told mtdealer.com last fall.
"We think Alliance is a good company and can be made more successful by injecting some marketing savvy," Brodsky also said at the time.
The Brodksy Group had been looking at the deal since 1992.
"We believe Alliance had and continues to have enormous potential and we regret that we were unable to complete the deal," Brodsky says.
"We wish them well and will gladly return to the negotiating table should conditions change in the future."
The Brodsky Group will continue to pursue other tire and rubber industry investment opportunities, he adds.
