JK Tyre & Industries and JK Asia Pacific, a wholly owned subsidiary of JK Tyre, have announced the acquisition of Cavendish Industries Ltd. (CIL), which had three Tyre Business Undertakings of Birla Tyres. These plants are located at Laksar in Haridwar and manufacture a range of tyres, tubes and flaps.
With this acquisition, JK Tyre now has a total of 12 tyre plants with nine located in India and three in Mexico. The acquisition is at an Enterprise Value of Rs 2200 crore. CIL will be a subsidiary of JK Tyre with majority shareholdings through direct holdings, and the balance through its subsidiaries and JK Group companies. The acquisition has been funded by a combination of internal accruals and debt.
This acquisition gives JK Tyre an opportunity to enter the two and three-wheeler tyre market.
The flagship company of the JK Group in the Tyres’ Business, JK Tyre & Industries Ltd. is amongst the top three automotive tyre manufacturers in India which makes tyres for trucks, bus, passenger cars and commercial vehicles.