Alliance Brand Will Live On, Even After Yokohama Acquisition
Alliance Tire Group (ATG) will preserve “its brand, its culture, and its customer relationship strategy,” as well as its management team, following the planned July 1 acquisition by Yokohama Rubber Co. Ltd.
Yokohama announced in March that it was acquiring Alliance from investment firm KKR in a deal of more than $1.1 billion.
The acquisition will allow Yokohama to enter into two new markets — for farm and forestry tires. But what does the deal mean to independent tire dealers who sell Alliance tires? Modern Tire Dealer asked Alliance to answer that question. Here is the company’s statement, in full:
“We strongly believe that this strategic partnership will enhance our collective ability to supply our world-class products to more customers internationally. Yokohama believes that ATG’s business and focus fit perfectly with its ongoing expansion, which should translate to more innovations and opportunities for our customers — they respect ATG’s strength, especially in its growth, profitability and brand in the OHT segment.
“Following the transaction’s close, ATG will continue to be led by its existing management team, including founder Yogesh Mahansaria. ATG will also be able to leverage Yokohama’s resources, research and development, global supply chain network, marketing capabilities and production expertise to better serve customers across industries and geographies.
“As an independent business unit with minimal product overlap with Yokohama’s portfolio, ATG will retain its brand, its culture and its customer relationship strategy. On a day-to-day basis, ATG’s operations and relationship with employees and customers will remain committed to working on behalf of our customers as usual. We don’t anticipate that there will be any major impact to the way customers order or receive their products.”