Reports: Alliance has private equity suitors

Several media outlets plus supporting information from Tyres & Accessories’ own sources are reporting that at least two private equity firms are preparing considering bids for Warburg Pincus LLC's majority stake in Alliance Tire Group (ATG). The potential deal is said to be valued at around US$400 million.

Singapore-based Temasek Holdings and KKR & Co. have been named online as the suitors and were said to be “in advanced talks” to buy the Warburg share in the tyremaker. US-based private equity firms Advent International and TPG Capital also were reported to be interested.

According to Tire Review, Warburg Pincus, which invested in Alliance in 2007, wants to sell its 72 per cent stake in the tyre maker, which is headed by CEO Yogesh Mahansaria.

ATG was expecting to post 2012 global sales of about US$600 million, and operates two agriculture and OTR tyre plants in Israel and India. In North America, the company distributes agricultural, OTR and medium truck radials.