The Yokohama Rubber Co., Ltd. reached an agreement with global investment firm KKR and other concerned parties to purchase all of the shares of Alliance Tire Group (ATG) as part of Yokohama Rubber’s plans to expand its commercial tyre business. The agreed equity value of the transaction is $1.179million. The acquisition is expected to be finalized on 1 July 2016, after completion of all necessary closing procedures, including regulatory approvals.
ATG has developed a highly specialized business in the manufacture and sale of tyres for agricultural, industrial, construction and forestry machinery. ATG sells radial and bias tyres for the aforementioned types of vehicles in 120 countries around the world, with a focus on the North American and European markets.
Yokohama Rubber does not currently manufacture or sell tyres for agricultural or forestry machinery. The acquisition of ATG will strengthen Yokohama Rubber’s product lineup 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.