Warburg Pincus To Exit Alliance Tire Group: Carlyle, Bain and Blackstone Sounded
Global PE major Warburg Pincus decided to exit its five year old investment in Alliance Tire Group and large buyout funds like Carlyle, Bain and Blackstone have been approached to buy its stake, ET stated.
Warburg appointed Credit Suisse to find buyers for its 70% stake. The rest 30% lies with the promoter group, Mahansaria family.
Warburg had invested $150 Mn in the company in 2007 to fund the acquisition of Isreali company, Alliance Tire Company and the subsequent development of a Greenfield low-cost manufacturing facility in India.
In 2009, it made an additional investment to again fund an acquisition of the off-highway tire assets of American firm GPX Corporation.
ATG makes off-highway tires primarily catering to the agricultural, construction and earth-moving applications and is headquartered in Mumbai.
It has two manufacturing plants, one in Hadera, Israel and the other at Tirunelveli, South India. It also has contract manufacturing facilities in China and Taiwan along with its R&D units spread across India, U.S and South Africa.
Three brands are under its wrap which include, Galaxy, Alliance and Primex and its operations span 120 countries across 6 continents.
If the deal fructifies, Warburg may be getting a return of 2-3x with the promoters having no intention to offload its stake.
In the space, Apollo Tyres was planning to buy American tyre maker Cooper Tire & Rubber Company this month.
Kesoram Industries was planning to raise around R500 Cr through rights issue in August this year and last year Ruia group owned, Falcon Tyres acquired Chamundi Plasto Sacks.
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