KKR to acquire Indian Alliance Tire

KKRAmerican private equity company KohlbergKravis Roberts (KKR) is set to purchase a 90% stake in specialised tyre maker Alliance Tire Group from rival private equity fund Warburg Pincus and owner Yogesh Kumar Mahansaria for US$650 million, including a debt of US$125 million.

The deal is likely to be announced this week as all the three sides have agreed on the financial terms and have more or less completed the legal formalities, according to reports. There are reports that the acquisition would be the second leveraged buyout (LBO) deal in the country after seven years.