Private equity firm, ex- Balkrishna CEO buy Alliance Tire

July 12, 2007

Private equity firm Warburg Pincus and the former CEO of Indian tiremaker Balkrishna Tires, Yogesh Mahansaria, have acquired Hadera, Israel-based tiremaker Alliance Tire Co. (1992) Ltd.

Terms of the sale were not disclosed.

Alliance's new owners say they plan to infuse capital into Alliance to fund future expansion and "development of low-cost sourcing capabilities from India."

Alliance President Joseph Anglister says the acquisition "will provide an impetus to our long-term objective of growing Alliance's product library, strengthening our relationship with existing customers and tapping new markets."

Alliance produces farm, forestry and other specialty tires.

The company's new owners have proposed the creation of a new production facility in India to supplement Alliance's production in Israel.