NEW YORK (July 11, 2007) — Private equity company Warburg Pincus L.L.C. and Yogesh Mahansaria, former CEO of India-based Balkrishna Tyres, have completed a deal valued at $150 million to buy majority control of Israel´s Alliance Tire Co. (1992) Ltd.
As part of the deal, the new owners are planning to set up a factory in India for some as-yet unidentified tire lines while also enhancing Alliance's existing plant in Israel.
Hadera, Israel-based Alliance Tire, previously a subsidiary of Israeli investment group Fishman Holdings, generates about $160 million in annual sales of farm and off-the-road tires and has 950 employees.
“Alliance is an exceptional company, with a highly respected brand, strong product knowledge, talented employees and significant potential for growth,” Mr. Mahansaria said in a prepared statement. “Warburg Pincus' extensive global network and flexibility in providing capital for a leveraged cross-border buy-out as well as for funding growth was instrumental in completing this transaction.”
Alliance Tire President Joseph Anglister welcomed the new owners, saying: “An investment by…Warburg Pincus combined with Yogesh Mahansaria's extensive experience in the off-highway tire industry will provide an impetus to our long-term objective of growing Alliance's product library, strengthening our relationship with existing customers and tapping new markets.”
Alliance is represented in North America by Alliance Tire USA in Danville, N.J.
Warburg Pincus describes itself as a private equity investor with approximately $20 billion in assets. In business since 1971, the firm has invested $26 billion in 570 companies in 30 countries and across a range of sectors.