 "Yokohama Rubber buys Alliance Tire for $1.2 bn")
As part of the plans to expand its commercial tyre business, Yokohama Rubber Co Ltd on March 25, 2016 reached an agreement with global investment firm KKR and other concerned parties to purchase all of the shares of Alliance Tire Group (ATG) for $1,179 million (approximately Yen 136 billion). Alliance Tire has two manufacturing sites in India and one in Israel.
The acquisition is expected to be finalised on July 1, 2016, after completion of all necessary closing procedures, including regulatory approvals.
Alliance Tire has developed a highly specialised business in the manufacture and sale of tyres for agricultural, industrial, construction and forestry machinery. ATG sells radial and bias tyres for these vehicles in 120 countries around the world, with a focus on the North American and European markets.
Agricultural equipment tyre demand is expected to increase as a result of the growing use of agricultural machinery, which is crucial to improve agricultural efficiency to meet the increasing food needs for the world’s growing population.
Yokohama Rubber is currently in phase IV (2015–2017) of its Grand Design 100 (GD100) medium-term management plan. This plan has established the expansion of the business in commercial tyres as a new core pillar of Yokohama Rubber’s tyre business strategy, and the company is accordingly devoting considerable resources to developing and expanding sales of ultra-large radial tyres for mining and construction equipment.
In addition, Yokohama Rubber recently started production of truck and bus tyres at a new plant in Mississippi (USA) and it plans to continue promoting local production for local consumption. The ATG acquisition will strengthen the Yokohama Group’s business in commercial tyres and accelerate its ongoing globalisation.
The acquisition is expected to be finalised on July 1, 2016, after completion of all necessary closing procedures, including regulatory approvals.
Alliance Tire has developed a highly specialised business in the manufacture and sale of tyres for agricultural, industrial, construction and forestry machinery. ATG sells radial and bias tyres for these vehicles in 120 countries around the world, with a focus on the North American and European markets.
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With the acquisition of off-highway tyre maker ATG, Yokohama Rubber, which currently does not manufacture tyres for agricultural or forestry machinery, expects to strengthen its product line-up in commercial tyres.
Agricultural equipment tyre demand is expected to increase as a result of the growing use of agricultural machinery, which is crucial to improve agricultural efficiency to meet the increasing food needs for the world’s growing population.
Yokohama Rubber is currently in phase IV (2015–2017) of its Grand Design 100 (GD100) medium-term management plan. This plan has established the expansion of the business in commercial tyres as a new core pillar of Yokohama Rubber’s tyre business strategy, and the company is accordingly devoting considerable resources to developing and expanding sales of ultra-large radial tyres for mining and construction equipment.
In addition, Yokohama Rubber recently started production of truck and bus tyres at a new plant in Mississippi (USA) and it plans to continue promoting local production for local consumption. The ATG acquisition will strengthen the Yokohama Group’s business in commercial tyres and accelerate its ongoing globalisation.