Select Page

KKR agreed to acquire the defense electronics business of Airbus Group SE (EPA: AIR) for €1.1 billion ($1.2 billion), in a deal commensurate in size with the ATG sale. The deal is valued at about 2.2 times Alliance Tire’s annual sales and more than 12 times its operating profit for the 2015 fiscal year, said Bloomberg. The ATG acquisition will strengthen Yokohama Group’s business in commercial tires and accelerate its ongoing globalization. ATG has developed a highly specialized business in the manufacture and sale of tires for agricultural, industrial, construction and forestry machinery. ATG sells radial and bias tires for these types of vehicles in 120 countries around the world, with a focus on the North American and European markets. ATG is a leading name in the global off-highway tires business. Alliance Tire Group BV, the parent company of ATG is based in The Netherlands, with operating subsidiaries in strategically important locations worldwide. It owns three world-renowned brands – Alliance, Galaxy and Primex. Well known names in the OHT segment in many parts of the world, these brands were brought together under the ATG banner, in a phased manner, from 2007. Alliance was the first brand to be absorbed and ATG, as a Group came into existence in early 2007, followed by Galaxy and Primex in the year 2009. The Group has presence in over 120 countries across 6 continents. The group achieved a global turnover in excess of $550 million in the year 2014. The ATG brands are well known for their ability to provide customers, both aftermarket and OEM, with Application-Specific, Purpose-Built tires. From fields to mines to factories to forests, ATG offers solutions for various necessities. ATG has 3 manufacturing facilities, one in Hadera, Israel (ATI), and two facilities in India (ATC) one in Tirunelveli, TN and another in Dahej, Gujarat. ATG was founded by Ashok Mahansaria and Yogesh Mahansaria, who are among the leading names in the off-highway tire industry, with the backing of Warburg Pincus. ATG is headquartered in The Netherlands with regional headquarters in the United States, India, South Africa and Israel. The Group also has offices / representatives in Argentina, Australia, Brazil, Canada, China, France, Germany, Iberia, Italy and Scandinavia. Yokohama is currently in Phase IV (2015–2017) of its Grand Design 100 (GD100) medium-term management plan. The plan provides for the expansion of the business in commercial tires as a new core pillar of Yokohama’s tire business strategy. Accordingly, the company is devoting considerable resources to developing and expanding sales of ultra-large radial tires for mining and construction equipment. Yokohama Rubber recently started production of truck and bus tires at a new plant in the U.S. state of Mississippi, and it plans to continue promoting local production for local consumption. The Yokohama Rubber Co. engages in the manufacture and sale of tires, and industrial and other products in Japan, the United states, and internationally. It provides tires for passenger cars and light trucks, trucks and buses, construction and mining equipment, industrial vehicles, and other applications; and aluminum alloy wheels and other peripheral products. The company also offers industrial products, such as high-pressure hoses, adhesives, sealants, coatings, conveyor belts, anti-seismic products, marine hoses, and pneumatic marine fenders. In addition, it provides aircraft fixtures and components, and golf equipment. The company offers its tires primarily under the Advan, BluEarth, iceGuard, Geolandar, and Yokohama brand names. The company was founded in 1917 and is headquartered in Tokyo, Japan. KKR, founded in 1976 and headquartered in New York City, is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. As of December 31, 2015, the firm had $120 billion in assets under management. KKR has a market capitalization of $6.87 billion, as of March 18, 2016.]]>