Indian tyre manufacturer JK Tyre and Industries announced on Monday that they have completed the acquisition of Cavendish Industries Ltd. (CIL) at an enterprise value of Rs 2,200 crore. JK Tyre announced in September 2015 the signing of an agreement with Kesoram Industries Ltd. to acquire 100% equity in CIL.
The acquisition funded by a mix of internal accruals and debt will make Cavendish a subsidiary of JK Tyre.
Cavendish Industries houses three Birla tyre business undertakings that manufacture a range of flats, tubes, and tyres in their plants located at Laksar, near Haridwar in Uttarakhand. This transaction brings these plants into the JK Tyre fold. JK Tyre now has a total of 12 plants – nine in India and three in Mexico.
“With the completion of acquisition of Cavendish Industries Ltd., JK Tyre further consolidates its leadership position in the tyre market, more so in truck and bus radial segment. With its strong research and development facilities, strategically located manufacturing plants in India and abroad, JK Tyre is well positioned for a sustainable growth in the years ahead and continue to meet changing needs of its Customers,” said JK Tyre chairman and managing directorRaghupatiSinghania in an official statement. This will also give the company access to the two and three wheeler tyre market.
Present in over 100 countries, JK Tyre also has interests in cement, paper, oil seals, auto components, defence electronic systems and others.
Source: Times of India