JK Tyres acquire Cavendish Industries
JK Tyre and Industries Ltd. have announced complete acquisition of Cavendish Industries Ltd. (CIL). In an official release, JK Tyre has stated that the acquisition was done at an enterprise value of Rs 2,200 crore. In September 2015, JK Tyres had announced the signing of an agreement with Kesoram Industries Ltd. to acquire 100 per cent equity in CIL.
CIL houses three tyre business undertakings of Birla Tyres. The plants are located at Laksar in Haridwar and manufacture a wide range of tyres, tubes and flaps. JK Tyre has announced that it will fund the deal with a mix of debts and internal accruals.
In an official release, Raghupati Singhania, chairman and managing director of JK Tyre commented, "With the completion of acquisition of Cavendish Industries Ltd., JK Tyre further consolidates its leadership position in the tyre market, more so in the truck and bus radial segment. With its strong research and development facilities, strategically located manufacturing plants in India and abroad, JK Tyre is well positioned for a sustainable growth in the years ahead and continue to meet changing needs of its Customers."
JK Tyre says that with the acquisition of CIL now complete, it's truck and bus radials manufacturing capacity has been enhanced. Additionally, it will also enable JK Tyre to foray into the two and three wheeler tyre market. The company states that 'this acquisition is in line with it's strategic vision of becoming one of the top tyre companies of the world'.