JK Tyre & Industries has acquired 100 percent shares of Mexican tyre company, Tornel, along with its subsidiaries for Rs 270 crore, making it the largest four-wheeler tyre company in the country.
The acquisition has been made through the Special Purpose Vehicle (SPV) route, which has been financed through a combination of equity and debt, a press release issued in Mumbai on Monday stated.
The company`s board had approved this acquisition in its meeting held on April 11 and all formalities and compliances with regard to the acquisition have been made and closing of the transaction took place on June 13, the release said.
The acquisition would help JK Tyre substantially increase its global footprint. “Strategic location of Mexico offers Tornel free access to the NAFTA trade block and emerging economies of central and Southern America,” the release said.
Tornel has a distribution network of 241 distributors and 282 sales outlets across Mexico.
Post-acquisition, the collective capacity of JK Tyre has risen to 940 tonnes per day with Tornel`s production capacity of 290 tonnes per day along with JK Tyre`s capacity of 650 tonnes per day, at its four plants in India.
With this acquisition, JK Tyre would have an annual capacity of 15.3 million tyres per annum and a combined turnover exceeding USD 1 billion, the release added.
Source: Zee News