Delhi-based JK Tyre, one of the top five tyre making companies in the country, has bought 100 per cent stake in the Mexico-based tyre-maker Tornel for Rs 270 crore.
The acquisition will help JK Tyre gain access to the world's largest auto market in the United States in addition to some distant markets of central and south America.
The acquisition was done through a special purpose vehicle and is expected to close by May end, subject to applicable approvals. The deal will be financed through a mix of internal accruals and debt.
Hari Shankar Singhania, chairman, JK Tyre and Industries, said, "JK Tyre has been outsourcing tyres for exports from China and Vietnam and from its 4 manufacturing facilities in India. In line with our vision, this acquisition extends our global reach. The acquisition is also a strategic fit for JK Tyre as we are already the largest exporter to the north and south American markets."
Tornel has a presence in the entire range of bias and radial tyres, with a portfolio ranging from truck, light commercial vehicle, farm and industrial tyres and passenger cars.
It operates three manufacturing plants in Mexico and has a combined production capacity of 6.6 million tyres per annum.
