M&A Deal Summary

KKR and Crescent Capital Group Acquire Alliance Tire Group B.V.

On April 12, 2013, private equity firm KKR and mezzanine finance firm Crescent Capital Group acquired automotive company Alliance Tire Group B.V. from Warburg Pincus for 650M USD

Acquisition Highlights
  • This is KKR’s 3rd and Crescent Capital Group’s 3rd transaction in the Automotive sector.
  • This is KKR’s 88th and Crescent Capital Group’s 12th largest (disclosed) transaction.
  • This is KKR’s 1st and Crescent Capital Group’s 1st transaction in Israel.
Investment Fate
  • Alliance Tire Group B.V. was sold to a publicly-traded strategic buyer in 2016 for 1.2B USD.

M&A Deal Summary

Date 2013-04-12
Target Alliance Tire Group B.V.
Sector Automotive
Buyer(s) KKR
Crescent Capital Group
Sellers(s) Warburg Pincus
Deal Type Secondary Buyout
Deal Value 650M USD
Advisor(s) Credit Suisse Investment Banking (Financial)

Target

Alliance Tire Group B.V.

Hadera, Israel
Alliance Tire Group B.V. is a Manufacture and sale of tires for agricultural, forestry, industrial, and construction machinery. ATG has developed a highly specialized business in the manufacture and sale of tires for agricultural, industrial, construction and forestry machinery. ATG sells radial and bias tires for the aforementioned types of vehicles in 120 countries around the world, with a focus on the North American and European markets.

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Buyer(S) 2

Buyer

KKR

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 267.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


DEAL STATS #
Overall 122 of 499
Sector: Automotive M&A 3 of 6
Type: Secondary Buyout M&A Deals 19 of 113
Country: Israel M&A 1 of 2
Year: 2013 M&A 4 of 21
Size (of disclosed) 88 of 108
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-04-02 BMG Rights Management

Berlin, Germany

BMG Rights Management is a start-up by years of existence, however considered a major international player in the music industry.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-04-18 SMCP SAS

Paris, France

SMCP Group is a apparel retailing group, operating in the attractive affordable luxury apparel segment across four brands: Sandro, Sandro Men, Maje and Claudie Pierlot. SMCP Group developed a unique and effective business model: combining luxury codes (marketing & communication, shopping experience) with creative design content and high-quality fabrics while leveraging best practices from the fast fashion industry (short collection cycles and reactivity to market trends supported by an efficient supply chain).

Buy -
Buyer

Crescent Capital Group

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1991
PE ASSETS 48.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Crescent Capital is a provider of debt securities to middle-market companies. Crescent looks to issue senior bank loans, high yield bonds, mezzanine debt and distressed debt to fund a variety of needs. The FIrm's direct lending group looks to provide $10 to $30 million to sponsor-backed companies that generate $5 to $40 million of EBITDA. Crescent's mezzanine practice typically provides junior capital to support buyouts, recapitalizations, and refinancings. Crescent Capital was formed in 1991 and was originally known as TCW/Crescent Mezzanine. The Firm has offices in Los Angeles, Boston, New York, and London.


DEAL STATS #
Overall 48 of 67
Sector: Automotive M&A 3 of 3
Type: Secondary Buyout M&A Deals 15 of 25
Country: Israel M&A 1 of 1
Year: 2013 M&A 1 of 2
Size (of disclosed) 12 of 15
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-23 ATI Physical Therapy

Downers Grove, Illinois, United States

ATI Physical Therapy is a rehabilitation provider, specializing in research-based physical therapy, workers’ compensation rehab, employer worksite solutions, and sports medicine. ATI Physical Therapy was founded in 1996 and is based in Downers Grove, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-11-01 The Container Store

Coppell, Texas, United States

The Container Store is a specialty retailer of storage and organizational solutions. The Company currently operates highly-productive destination specialty retail stores across the U.S., an internet and mail order business, and a wholesale business. The Container Store was founded in 1978 and is based in Coppell, Texas.

Sell -

Seller(S) 1

SELLER

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


DEAL STATS #
Overall 80 of 263
Sector: Automotive M&A 1 of 4
Type: Secondary Buyout M&A Deals 9 of 47
Country: Israel M&A 1 of 1
Year: 2013 M&A 2 of 20
Size (of disclosed) 33 of 66
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-01-07 TradeCard

New York City, New York, United States

TradeCard provides on-demand financial supply chain products to top retailers, brands and manufacturers. By connecting these buyers online with their domestic and international suppliers, TradeCard automates the processes from procurement through payment. Corporate Financing Managers can gain access to TradeCard's suite of integrated financial products that reduce working capital and capture payment discounts, while TradeCard's compliance scorecards and chargeback management tools help procurement chiefs to optimize supplier performance.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-04-15 Avtec

New Delhi, India

Avtec Ltd. is an independent manufacturer of engines and transmissions (Powertrains), supplying critical auto components to reputed global OEMs including GM, Ford, Mahindra & Mahindra, Caterpillar, BEML and Hindustan Motors.

Buy -