JK Tyre Gains Access to NAFTA Markets Through Tornel Acquisition
India’s JK Tyre & Industries has gained a channel through which it can access the NAFTA markets following the purchase of Mexican tyre manufacturer Tornel. The Rs 2.7 billion (£34.19 million) acquisition was announced on April 11, and will give JK Tyre the scope to expand in the Americas thanks to the free trade agreement in place between Mexico, Canada and the US.
“The acquisition is also a strategic fit for JK Tyre as we are already the largest exporter to the North and South American markets,” Chairman Hari Shankar Singhania said in a statement released by JK Tyre. The statement added that Tornel operates three tyre facilities with a combined annual capacity of 6.6 million tyres, and employs around 2,000 people.
The acquisition is anticipated to close by the end of May 2008, and will be funded through a combination of internal accruals and debt.