Simpson Thacher & Bartlett is advising Kohlberg Kravis Roberts & Co. on its purchase of a controlling stake in India’s Alliance Tire Group B.V. for a price reportedly as high as $650 million. 
KKR is buying its interest in Alliance Tire from Warburg Pincus. Terms of the deal were not disclosed, but the Financial Times, citing people familiar with the transaction, reported the value at $650 million, including the assumption of $120 in debt.
Alliance Tire, whose off-highway tires are manufactured in India and Israel, largely serves the agricultural, forestry, and construction industries, exporting 90 percent of its production. The company employs more than 2,500 people worldwide.
KKR said in its statement that the deal, which is subject to regulatory approvals, was attractive because of the strong potential for growth in the industries Alliance Tire targets. Company founder Yogesh Mahansaria will retain an ownership stake and stay on to help KKR grow the business.
Simpson Thacher Hong Kong partners Kathryn Sudol and Sinead O’Shea are acting for KKR. Mumbai’s AZB Partners is advising on Indian law.
Davis Polk & Wardwell Hong Kong partner Kirtee Kapoor is representing Warburg Pincus and Alliance Tire, with Amarchand & Mangaldas & Suresh A Shroff & Co. Mumbai partners Vandana Shroff, Alice George, and Nisha Kaur Uberoi acting as Indian counsel.
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