TOKYO (July 5, 2016) — Yokohama Rubber Co. Ltd. (YRC) has completed its acquisition of farm and OTR tire maker Alliance Tire Group B.V. (ATG) and named Toru Kobayashi executive vice president and chairman of the business within Yokohama.
The Tokyo-based tire maker agreed to pay $1.18 billion for ATG, which operates two plants in India and one in Israel and reported $529 million in sales and $95 million in operating profit in fiscal 2015.
YRC said it intends to include ATG's results in its third quarter financial accounts and will disclose soon the expected impact on the full-year consolidated financial statements.
Yokohama recently disclosed it had arranged to borrow $1.54 billion to help fund the acquisition.
YRC acquired ATG from global investment firm KKR & Co. L.P. and other concerned parties in March. The debt-finance deal is with Mizuho Bank Ltd.
Mr. Kobayashi is listed as an executive vice president and assistant to the president. YRC did not disclose more information about his background.
ATG's three tire plants are in Hadera, Israel, and Tirunelveli and Dahej, India — the latter of which opened in late 2014. ATG also contracts out production to manufacturers in China and Taiwan.
The company goes to market with three brands: Alliance, Galaxy and Primex.
YRC produces OTR tires at a plant in Onomichi, Japan, and via an off-take agreement with Shandong Xingda Tyre Co. Ltd. of Dongying, Shandong, China, but it does not produce or sell agricultural tires.