Alliance Tire goes to investors for $150 million

Hadera. Israel - Alliance Tire Co., the Israeli tyre maker is being sold to a group of investors for around €110 million. The buyers are a consortium led by global private equity company, Warburg Pincus and supported by Yogesh Mahansaria, former CEO of Balkrishna Tyres.

The consortium expects to inject more capital into the company as they build a greenfield tyre plant in India to augment the existing production in Israel for the manufacture of specialty off-road tyres.

Joseph Anglister, President, Alliance Tire Company said: “We welcome the new ownership. An investment by a leading international investor such as Warburg Pincus combined with Yogesh Mahansaria's extensive experience in the off-highway tyre 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.”

Commenting on this investment, Yogesh Mahansaria said: “Alliance is an exceptional company, with a highly respected brand, strong product knowledge, talented employees and significant potential for growth. I am excited to partner with Warburg Pincus, a distinguished firm with a proven track record in supporting entrepreneurs to build successful businesses. 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.”

Cipher Capital Advisors acted as financial advisor and Amarchand Mangaldas provided legal advice for the transaction. Poalim Capital Markets, Tel Aviv and Goldfarb, Levy, Eran, Meiri & Co. served as local advisors in Israel.