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Investment firm buys Alliance Tire Group

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Kohlberg Kravis Roberts & Co. L.P. (KKR), a global investment firm based in New York, N.Y., has entered into an agreement to acquire a controlling stake in Alliance Tire Group (ATG). KKR is purchasing the stake from an affiliate of Warburg Pincus LLC.

Yogesh Mahansaria will continue to maintain an ownership stake in the company he founded, and partner with KKR "to continue to grow the business," according to KKR. Terms of the transaction were not disclosed.

Alliance Tire employs more than 2,500 people worldwide. It manufactures industrial, agricultural and OTR tires at its plants in Israel and India. It has R&D facilities in Israel, India, the United States and South Africa.

The company’s Alliance, Galaxy and Primex tires are available in more than 120 countries.

"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," says Sanjay Nayar, a member of KKR and Head of KKR India. "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.”

“From funding the initial acquisition of Israel-based Alliance Tire Co. 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," adds 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 (TCW Group Inc.), with additional participation by the Ivy High Income Fund (Ivy Investment Management Co.).

KKR & Co. plans to release its first-quarter 2013 financial results on Thursday, April 25, before the opening of trading on the New York Stock Exchange. KKR had $75.5 billion in assets under management as of Dec. 31, 2012.

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