Titan International Inc. has closed the acquisition of a majority interest in Voltyre-Prom from Cordiant for $94 million. Titan will assume the company's debts as part of the deal.
The acquisition of the Russian company, a leading producer of agricultural and industrial tires in Volgograd, Russia, was made in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF).
"As Titan focuses on building a leading wheel, tire and undercarriage enterprise across the world, this transaction offers unique opportunities to both Titan and Voltyre-Prom,' says Titan. "This investment will allow Voltyre-Prom to update its current operations and strategically grow the business.
"The acquisition complements Titan’s global strategy expanding our footprint into Russia. Voltyre-Prom held a 43% market share in agriculture tires and 16% market share in industrial tires in Russia in 2012. Titan’s experience in these markets will allow us to add synergies and resources to execute on opportunities for growth."
"Titan’s top customers such as Deere, CNH and Agco are expanding into the Russian market, where agriculture is prospering as equipment purchases and mechanization increases," adds the company.
Voltyre-Prom's annual revenue in 2012 was approximately $200 million.
