One Equity Partners et al. acquire Voltyre-Prom

The consortium acquired a controlling stake in the company for approximately $94m, including the assumption of debt, from Russian tyre manufacturer Cordiant. Cordiant's revenues in 2012 stood at RUB 28bn, or approximately €639m.

According to Titan, the acquisition is subject to several post-closing adjustments over a three-year period. Titan will become a managing partner of Voltyre-Prom following the transaction.

The consortium plans on expanding Voltyre-Prom's production capacity to begin the internationalisation of the company, reducing Russia's reliance on importing speciality tyres and eventually allowing the country to export them.

The deal marks the first investment made in Russia by One Equity, the former private equity division of JP Morgan that split from the US bank in June to become an independent firm.

Titan is an Illinois-headquartered off-road tyre and wheel manufacturer, owning the Titan and Goodyear Farm Tire brands.

RDIF is a $10bn, state-owned fund mandated to secure co-investment that either matches or exceeds its own contribution to a company's equity.

Company
Founded in 1964, Voltyre-Prom is headquartered in Volzhsky, a city in the Volgograd Oblast region. The company generated revenues of approximately $200m in 2012.

Voltyre-Prom manufactures industrial and agricultural tyres. According to Titan, Voltyre-Prom held a 43% share of the agricultural tyre market in Russia in 2012, as well as a 16% share of the country's industrial tyre market.

People
Shilin Olga is the CEO of Voltyre-Prom. Maurice Taylor is the chairman and CEO of Titan. Dick Cashin is the managing partner of One Equity, while Kirill Dmitriev is the CEO of RDIF.

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• Topics
• CEE
• Buyouts
• Industrials
• Russia
• One Equity Partners
• Russian Direct Investment Fund (RDIF)