Investor group offers to buy majority share in Alliance Tire
A group of American investors led by industry veteran Harvey Brodsky plans to invest $50 million in Hadera, Israel-based Alliance Tire Co., thereby obtaining 51% share in the company.
One-fifth of that sum will be injected into Alliance "either as a shareholders' loan, or as an addition to the investment in (Alliance's) equity," according to Alliance officials.
The Harvey Brodsky Group LLC consists of "a group of American businessmen who (have been) involved in the tire industry for many years."
The organization and Alliance -- whose United States subsidiary, Alliance Tire Co. USA Ltd., is headquartered in Danville, N.J. -- have executed a Memorandum of Understanding.
"At the conclusion of the negotiation process toward an investment agreement and the completion of the due diligence process, the parties shall have the option, at their discretion, to decide whether to perform said transaction," says Alliance officials.
Harvey Brodsky also is the long-time managing director of the Tire Retread Information Bureau.