AMSTERDAM—Global investment firm KKR & Co. L.P. has entered into an agreement to acquire a controlling stake in Alliance Tire Group from an affiliate of private equity firm Warburg Pincus.
Yogesh Mahansaria, founder of ATG, will maintain his ownership stake in the company and partner with KKR to continue growing the business, according to the company. Terms of the transaction, subject to customary closing conditions—including receipt of regulatory and third-party consents—were not disclosed.
Employing more than 2,500 worldwide, ATG is a developer, manufacturer and supplier of off-highway tires with a focus on the agricultural, forestry and construction industries. ATG's tires are manufactured at facilities in Israel and India, with research and development facilities in Israel, India, the U.S. and South Africa.
The company's brands include Alliance, Galaxy and Primex and are available in more than 120 countries, ATG said.
Founded in 1976, KKR is a global investment firm with $75.5 billion in assets under management as of Dec. 31, the company said. Led by Henry Kravis and George Roberts, the firm said it manages assets through a variety of investment funds and accounts covering multiple asset classes.
KKR's stake in ATG is being made through investment funds and will be supported by private equity firm TCW/Crescent Mezzanine L.L.C. and the Ivy High Income Fund, ATG said.
"Our team is impressed by KKR's franchise and its strong track record," Mahansaria said. "KKR's investment will enable us to continue to expand into new markets, make strategic acquisitions, and help scale our global presence."