HADERA, Israel (Jan. 8) — U.S. private equity fund Warburg Pincus L.L.C.,, in partnership with Indian businessman Yogesh Mahansaria, are proceeding with plans to buy full control of Alliance Tire Co. Ltd. in a deal that could be valued at $45 million.
New York-based Warburg Pincus first disclosed its interest in Israel's Alliance — the world's 50th largest tire maker with 2005 sales of $151.4 million — last September. The company did not say when Mahansaria – formerly an executive with India's Balkrishna Industries Ltd. — joined the buyout bid.
While Warburg Pincus previously indicated it was after majority control, now it wants 100-percent control, according to Alliance.
Israel's Fishman Holdings, a diversified holding company, is the majority shareholder of Alliance. The remainder is in the hands of private shareholders.
Alliance said it believes the deal will be completed in the second quarter.