India's JK Tyre acquires Mexican tiremaker Tornel
New Delhi, India-based tire manufacturer JK Tyre & Industries Ltd. is acquiring 100% of Mexican tiremaker Tornel. The transaction is expected to close next month. Tornel has three tire plants with a total production capacity of 6.6 million units per year.
The factories manufacture radial passenger cars, bias and radial truck tires and bias farm and industrial tires. They join JK Tyre's current production network of four plants in India.
Tornel achieves annual revenue of $202 million, according to JK Tyre officials. "Together with JK Tyre's turnover of $800 million," the combined companies are projected to achieve total revenue of more than $1 billion.
"Tornel has a very wide distribution network of 241 distributors and 282 sales outlets. The strategic location of Mexico offers Tornel free access to the North American Free Trade Agreement trade block and emerging economies of Central and South America.
"The takeover of Tornel will also enable JK Tyre to realign its domestic capacities. In line with our vision, this acquisition extends our global reach," says JK Tyre Chairman Hari Shankar Singhania.
JK Tyre exports to 75 countries, many of them in Central and South America.
"This acquisition will add substantial value to our existing tire operations and strengthen our brand positioning," say company officials.