Yokohama Rubber Buys Alliance Tire Group

Japanese tiremaker Yokohama Rubber Co. has agreed to purchase the Alliance Tire Group BV from private equity firm KKR & Co. LP for $1.2 billion. The companies expect to finalize the sale by July 1.

Netherlands-based Alliance Tire is a maker of off-road tires for agricultural, construction and forestry vehicles, a market in which Yokohama has not participated. Last year ATG generated sales of $529 million.

ATG, which operates factories in Israel and India, also sells tires produced under contract from tiremakers in China and Taiwan. The company markets tires under the Alliance, Galaxy and Primex brands.