MUMBAI, April 9 U.S. private equity firm KKR &
Co LP has agreed to buy a controlling stake in Indian
tyre maker Alliance Tire Group for about $500 million from
Warburg Pincus LLC, three sources with direct knowledge
of the matter told Reuters.
The deal, set to be one of the biggest private equity
investments in India in recent months, could be announced as
soon as this week, said the sources, who declined to be
identified before a public announcement.
Under the deal terms, KKR will buy a roughly 75 percent
stake from Warburg Pincus, which invested in Alliance in 2007.
KKR will also take over about $125 million of Alliance Tire's
Alliance Tire owns two manufacturing plants, one each in
Israel and India, and has a sales presence in more than 120
countries, according to its website. Alliance's tyres are also
made at contract manufacturing facilities in China and Taiwan.
The group had sales of more than $500 million in 2012.
KKR and Warburg Pincus declined to comment, while Alliance
Tire officials were not immediately available for comment.
Private equity firms including Advent International, TPG
Capital, Singapore state investor Temasek Holdings and
KKR had been in separate talks to buy Warburg Pincus' stake in
Alliance, sources had told Reuters in January..