On 25 March, the Yokohama Rubber Co. Ltd. announced it has reached an agreement with global investment firm KKR and three other parties to purchase all shares in Alliance Tire Group (ATG) for an agreed equity value of US$1,179 million. The transaction is expected to be finalised on 1 July 2016, after the completion of all necessary closing procedures, including regulatory approvals.
Growth will be the focus of Yokohama Rubber’s energies in the fourth and final phase of its ‘Grand Design 100’ medium-term management plan. The Japanese tyre and rubber products manufacturer unveiled details of the three-year Phase IV on 13 February and announced it aim of raising annual net sales to 770 billion yen (£4.2 billion) and annual operating income to 80 billion yen (£438.2 million) by 2017, and to increase operating profit margin to 10.4 per cent within the same timeframe.
