Alliance Tire bids for bankrupt GPX´s OTR-related assets

Tire Business staff report

Malden, Massachusetts - Alliance Tire Co. (1992) USA Ltd. has offered to buy certain OTR-related assets of off-road and industrial tire maker/distributor GPX International Tire Corp. - which filed for Chapter 11 bankruptcy Oct. 26 - for $38.3 million.

Alliance said it is bidding for certain GPX assets, including the US and South African operations, customer relationships, warehouse footprint, worldwide rights to the Galaxy and Primex brands and GPX's medium radial truck tyre distribution business. Alliance expects to conclude the deal by year-end, subject to court approval.

Hadera, Israel-based Alliance said it will continue to market Galaxy, Primex, other GPX brands, and medium radial truck tyres to GPX's customer base. The combined customer base will benefit from the complementary strengths of the Alliance and GPX product lines, particularly in the agricultural and construction tire segments, the company said.

Alliance will continue to source products from GPX's network of manufacturers in China and elsewhere. The combination of the Alliance and GPX manufacturing resources provides Alliance with a large, diverse and highly flexible global sourcing platform that is capable of providing competitive products in all segments of the OTR tire industry, both globally and in North America, Alliance said.

Malden-based GPX filed for Chapter 11 bankruptcy protection 26 Oct in the U.S. Bankruptcy Court for the District of Massachusetts.

Denville, N.J.-based Alliance Tire Co. USA is a subsidiary of Hadera, Israel-based Alliance Tire Co. (1992) Ltd., which operates farm and OTR tire plants in Israel and India. It is owned by India's Mahansaria family with financial backing of Warburg Pincus, a leading global private equity firm.

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Alliance Tire bids for bankrupt GPX´s OTR-related assets from Tire Business (a Crain publication)