QUINCY, Ill. (Oct. 4, 2013) — Titan International Inc. and its industrial partners in Russia have completed the acquisition of majority control of Russian farm/industrial tire maker Voltyre-Prom for about $94 million, including the assumption of an undisclosed amount of debt.
Titan International will act as managing partner for the investment consortium, which also includes One Equity Partners (OEP) and Russian Direct Investment Fund (RDIF). The consortium combines strong local business knowledge, financial expertise and manufacturing proficiency, Titan said.
The consortium's investment will allow Voltyre-Prom to update its operations and expand its business, Titan said. The acquisition complements Titan's global strategy by expanding the firm's footprint into Russia.
Titan did not disclose what percentage the consortium owns of Voltyre-Prom.
According to Titan, Ekaterinburg, Russia-based Voltyre-Prom held a 43-percent share in agriculture tires and 16-percent share in industrial tires in the Russian market last year, which translated into annual sales last year of approximately $200 million.
Titan said it expects to be able to take advantage of opportunities for growth in the region, including leveraging its presence with key customers such as Deere, CNH and Agco, which are expanding into the Russian market, where agriculture is prospering as equipment purchases and mechanization increases.
As managing partner of the consortium, Titan plans to expand Voltyre-Prom's product offering and dealer network in Russia, according to Chairman and CEO Maurice Taylor, who said Voltyre-Prom's top executives, led by Olga Shilina, toured Titan's U.S. facilities last month in advance of the deal's completion.
The deal, with Russian tire maker JSC Cordiant, is subject to various post-closing adjustments over a period of three years, Titan said.
Titan, OEP and RDIF disclosed their plans to buy into Voltyre-Prom in mid-June.