American PE giant Kohlberg Kravis Roberts & Co may sell 90% stake in Alliance Tire!

Alliance Tire may see exit of Kohlberg Kravis Roberts & Co (KKR), which holds 90% stake in the company.

This could be biggest ever exit by an private equity from an Indian firm.

ET reported that Japan's Sumitomo Group, Germany's Continental Tires and France's Michelin Group have been sounded out as some PE-led consortiums.

If the America-based KKR quits, it will leave with 30% Internal Rate of Return (IRR).

Alliance Tire, which was founded in 2006 by Ashok Mahansaria and his son Yogesh Mahansaria, is world's fifth largest, off-highway tyre maker.

Alliance Tire is spread in over 120 nations and was founded with the backing from Warburg Pincus.

It has research and development centres in Israel, the US and India.

Reportedly, the tyre industry is facing weak macro environment and tariff wars.

HSBC noted that that the present environment has been tough for global off-highway tyre producers.

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