KKR confirms Alliance Tire Group purchase

Kohlberg Kravis Robert (commonly known as KKR) has confirmed reports that it is acquiring a controlling stake in Alliance Tire Group (ATG) from an affiliate of Warburg Pincus. KKR also confirmed that Yogesh Mahansaria, founder of ATG, will continue to maintain an ownership stake in the company and partner with KKR to continue to grow the business. Terms of the transaction were not disclosed and so details of current shareholdings and therefore the balance of power are not yet clear. As usual, the transaction is subject to customary closing conditions, including receipt of regulatory and third-party consents.

“We would be delighted to have KKR as our new incoming partner. Our team is impressed by KKR’s franchise and its strong track record. KKR’s investment will enable us to continue to expand into new markets, make strategic acquisitions, and help scale our global presence” said Yogesh Mahansaria. “We would also like to thank Warburg Pincus for its support during the past six years as it helped create and build ATG into the global industry leader that it is today.”

“ATG is a leader in an attractive industry with strong underlying growth drivers. We are thrilled to be partnered with Yogesh and his management team and look forward to leveraging our global network to support their continued growth,” said Sanjay Nayar, Member of KKR and Head of KKR India.

“From funding the initial acquisition of Israel-based Alliance Tire Company to the development of a global player in the off-highway tyre sector, our partnership with Yogesh and the entire ATG management team has been an extremely successful one. We are confident that ATG’s success will continue with its new partners,” said Vishal Mahadevia, Managing Director and Co-Head of Warburg Pincus India.

KKR’s investment in ATG is being made through its investment funds and will be supported by a financing tranche led by Crescent Mezzanine with additional participation by the Ivy High Income Fund. Credit Suisse served as the financial advisor to ATG and Nine Rivers Capital advised the Founders. Barclays Bank PLC and JP Morgan served as advisors to KKR for this transaction.