Mumbai: Yokohama Rubber has agreed to about 12% to buy US private equity giant KKR Alliance Tire Group Holdings (ATG) for $100 million. This is one of the largest private equity exits in Indian investments and the largest strategic investment so far this year.1.

The Japanese company will acquire the 90% stake held by KKR and the 10% stake held by the Mahansaria family. The acquisition is expected to close on July 1, 2016, Yokohama said in a statement on Friday. The Economic Times first reported this potential deal on February 7 The Daily.

KKR acquired Alliance 90% from Warburg Start Pincus in 2013 for about $5 from Warburg Start Pincus for $100 million Under the terms of the deal, the private equity firm will more than double its return at constant exchange rates. The deal marks KKRRR’s third foray into the Indian market after the sale of Bharti Infratel last year and shares in Dalmia and Bharat earlier this year.

Barclays advised Yokohama Bank and Credit Suisse advised ATG. Following last year’s Apaxx. Partners and Capgemini sold shares of iGate for $41 for $100 million after the issue, the deal will be the second largest exit deal for an Indian private equity firm.

The Japanese company said the deal is part of Yokohama’s plan to expand its commercial tire business. “Yokohama Rubber does not currently manufacture or sell tires for agricultural and forestry machinery. This acquisition will strengthen Yokohama Rubber’s product lineup in the commercial tire segment.”

Demand for agricultural equipment tires is expected to increase as the use of agricultural machinery grows, which is critical to improving efficiency to meet the growing global demand for food.

Alliance Tire Industry Veteran Ashok Mahansaria and son Yogesh in 2006 Founded in 2000, Alliance is the world’s fifth largest off-highway tire manufacturer, producing off-highway tires for agriculture, forestry and construction. Mahansarias Balakrishna is a leading manufacturer of specialty tires Industries 2006 Minority Shareholder and Director Left this Indian company annually to form Alliance Tire Group with the backing of Warburg Pincus in Alliance.

KKR acquired Warburg Pincus shares in 2013 Annually. Since the acquisition, the U.S. fund has invested in the plant and expanded into new markets. Alliance operates in more than 120 countries and had global sales of more than 5.29 operating profit of $95 billion million in fiscal 2015, the statement said. In addition to contract manufacturers in China and Taiwan, the company has plants in Tirunelveli in Tamil Nadu, Dahji in Gujarat and Hadera in Israel. The company has R&D centers in Israel, the US and India.

In a March 10 report, HSBC said Indian companies account for about 10 percent of total U.S. off-road tire imports, posing a serious threat to larger companies. “However, we believe that the price gap between US and Indian players is so wide that simply qualifying for ADD could have a significant impact, which could be very difficult for Indian players. We see the 10% rebate as a subsidy for market share. Taxes are probably minimal.

KKR Global Management 1200 Assets of $100 million since 2006 Assets of $100 million Years invested about 17 deals in India through 11 $ billion. The New York-based India fund office, led by former Citigroup India CEO Sanjay Nayar, bid more than $3.2. It provides structured finance to Indian business groups through its credit, NBFC, non-banking finance company (NBFC) and capital markets businesses. As of March 2016, it has invested about $200 million in special situations.