Russian billionaire acquires Cordiant from S8 Capital

Moscow – Russia’s Severgroup, owned by billionaire Alexey Mordashov, has recently acquired Russian tire and automotive parts manufacturer Cordiant Group from private equity investor S8 Capital.

The purchase includes Russia-based: Cordiant, Tunga, Torrero and Gislaved passenger car tire brands; Cordiant Professional and Tyrex truck tire brands; and Meteor brands Auto, Termo and Tech.

Severgroup said it sees potential for further development in the tire and automotive components markets using Cordiant as a platform.

Based in Moscow, Cordiant, employs 8,000 people across four production plants, including the former Bridgestone and Continental tire factories in Ulyanovsk and Kaluga, respectively and two previously owned plants in Omsk and Yaroslavl.

Cordiant Group also acquired the Russian assets of Germany's Bosch in Engels, Saratov region in April 2023, following its exit from the country.

"The assets of Cordiant became part of Severgroup during a very important period of transformation for the market,” said Severgroup in a recent blog post.

The post stressed the importance of ‘effective management’ to help “localise” the Russian tires, auto components and equipment industry to satisfy the growing demand both in the mass and premium segments.

Severgroup, it said, “has vast experience in managing industrial companies that are recognised leaders in their industries.”

Among its priorities, Severgroup aims to expand of the product line of tires and auto components with a focus on “a high level of product quality”, as well as active investments in R&D, said CEO Mordashov.

Financial details of the acquisition were not disclosed.