Yokohama Rubber Acquires Alliance Tire Group For $1,179-Mn

Tokyo-based prominent tyre manufacturing brand from Japan, Yokohama Rubber Company Limited is all set to takeover Alliance Tire Group (ATG), an off-highway-tyre maker for 1179 million USD. As per the agreement with global investment firm KKR and Mahansaria family, Yokohama buys-out 100% stake of the Netherland-based ATG. The statement issued by the Japanese company said that by July 1, 2016, after the completion of regulatory approvals and other essential closing procedures, the acquisition will reach its final stage. At present, Yokohama does not manufacture or sell tyres for agricultural or forestry machinery. Hence, with this acquisition, the Japanese tyre giant will witness a reasonable thrust in its commercial vehicles tyre business.

Currently, KKR AT Dutch BV embraces an 87.48% shares in ATG BV, whereas Yogesh Agencies & Investments Private Ltd., holds 10.1% and the remaining stake is shared by Zubin Dubash and International Finance Corporation, 0.26% and 2.25% respectively.

ATG brand radials and bias are sold in 120 countries across the globe, while the major chunk of these goods is delivered in the North American and European markets. The Hadera, Israel headquartered company has one manufacturing unit in Israel and two in India. The firm has an exceptional hold over the manufacturing and sale of tyres in the arena of agricultural, industrial, construction and forestry machinery. ATG enjoys an annual sale of 529 million USD together with a 95 million USD of operating profit.

The agreement further disclosed that due to an increase in the use of agricultural machinery, the demand for agricultural equipment tyre has seen a surge, which is vital to advance the agricultural efficiency in order to overcome the rising food needs of the world’s ever increasing population.

UPDATE: On 1st July 2016, Yokohama Rubber Company (YRC) officially announced the completion of the acquisition of Alliance Tire Group (ATG). And Mr. Toru Kobayashi, who served as an assistant to the YRC president Mr. Hikomitsu Noji was appointed as the chairman for ATG.

Author: Ankit verma

My need for speed began at a very early age and I realised this as soon as I got my first bicycle at the age of 8. When all the other kids would break downhill I would pedal harder just to go faster and enjoy the thrill. Adding to my interest for speed, I grew engrossed in the working mechanics of two wheelers thanks to my father as he is a hydraulic mechanic and would take me along with him on his repair sessions. Eventually I became familiar with the tools and basic technical concepts of two wheelers.Super sport and sport tourers are more of my liking and the sparks to these flames were ignited the first time I experienced the maddening power of a Yamaha YZF R1. I was just 14 years old at the time and got to ride as a pillion with an older acquaintance. This one short ride influenced my every decision in terms of the bikes I want to own. As of today I’m 26 years old and a proud owner of a Yamaha Fz15 version 2.0 and a Kawasaki Ninja 650 2014 model having clocked a decent 30k Kms only while touring, waiting to clock 1000s more as riding makes me feel whole again after enduring the dismal routines of life. Read more