Alliance Bid for GPX Assets Accepted
Alliance Tire Group has successfully fought off Titan International’s bid for key GPX International Tire Corporation assets. On December 2, Titan submitted a US$44 million bit for GPX International’s US and South African business assets to the US Bankruptcy Court for the District of Massachusetts, an offer $5.7 million higher than that previously announced by Alliance. However, on December 8 Alliance announced the court approval of its agreement to acquire key GPX International assets, customer relationships, warehouse footprint and engineering capabilities. The agreement will also give Alliance worldwide rights to the Galaxy and Primex brands, the company’s medium radial truck tyre distribution business and South African subsidiary, GPX Tyre South Africa (Pty.). Exact details of Alliance’s final bid are unknown, however it is said to be in excess of $50 million.
Purchasing the GPX assets, says Alliance, accelerates several key areas of company strategy, such as its growing presence in the North American OTR and agricultural tyre market and the group’s global tyre portfolio. It will also give Alliance access to a well-established distribution footprint in the US and enable it to take advantage of GPX research and development. Alliance will continue to market Galaxy, Primex, other GPX brands, and medium radial truck tyres to GPX’s customer base.
“This acquisition is an exceptional step forward for Alliance Tire Group. It supports our strategy by adding a significant range of quality products to our portfolio as well as an expanding our ability to serve the North American market,” said Alliance Tire Group chief executive Yogesh Mahansaria, commenting on the deal. “This transaction reinforces the Group’s position as a key leader in the agriculture, industrial, and OTR tyre industry. We are fully confident that the synergy between the Alliance, Galaxy and Primex brands will enable us to provide optimised solutions to the market.”
Alliance’s purchase is one of three deals linked to GPX assets. Following the October 26 bankruptcy announcement, GPX International CEO Craig Steinke also announced the company’s entry into a “definitive sale agreement for its Solid Tire business and Starbright manufacturing facility in China.” Steinke stated in mid-November that “an investor group will partner with members of the management team to purchase the operations and underlying assets of the Solid Tire business.” The transaction includes the MITL, ITL and Brawler brands, as well as the Gorham, Maine; Red Lion, Pennsylvania; and Hebei, China manufacturing facilities.
A management team headed by ex-GPX chiefs Robert Sherkin and Peter Koszo is purchasing GPX’s Canadian subsidiary, Dynamic Tire. This operation will handle the Canadian sales and distribution of Galaxy and Primex brand OTR tyres, the sale and distribution of medium radial truck and passenger car tyres, and private label sourcing.