RDIF, Titan International and One Equity Partners Complete Deal for Russia’s Largest Agriculture Tire Producer with Cordiant
Press release, 07.10.2013
Moscow, October 7, 2013 – A consortium of the Russian Direct Investment Fund (RDIF), Titan International Inc. and One Equity Partners announced they have completed the acquisition of leading Russian agricultural and industrial tire manufacturer, OJSC Voltyre-Prom, from Cordiant.
Under Cordiant’s management OJSC Voltyre-Prom has successfully developed its production base, updating production processes through the introduction of new technology and establishing quality control procedures. This has underpinned the expansion of the company’s product portfolio and streamlined business operations.
Titan International plans further modernization at Voltyre-Prom to allow further growth in the production of tires for international and domestic modern agricultural machinery. This will reduce Russia’s reliance on imports of the specialty tires and may eventually enable the country to begin exporting the products.
The participation of Titan International in the deal is significant as the first global industrial strategic partner RDIF has invested alongside. The deal also represents One Equity Partners’ first investment in Russia.
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity investments primarily in the Russian Federation. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Further information at rdif.ru
Titan International is one of the world’s largest manufacturers of agricultural and industrial tires with net sales exceeding US$1.8 billion in 2012. The company operates globally and manufactures under the Titan and Goodyear brands. Its OEM customers include John Deere, AGCO, Case IH/Case Construction, New Holland, Caterpillar and Kubota. Further information at www.titan-intl.com
One Equity Partners. Founded in 2001, One Equity Partners, a subsidiary of JP Morgan Chase & Co., currently manages US$11 billion portfolio of private equity investments. By working in partnership with owners and managers, OEP invests globally in transactions that promote strategic and operating change, creating long-term value. Further information at www.oneequity.com
Cordiant – is a leading Russian producer of tires. It consists of 3 tire plants and 3 divisions. The revenue for 2012 was 28 billion rubles. The holding produces and supplies about 400 different types of tires. The main brands (auto and light truck tires) and TyRex (cargo tires). Further information at cordiant.ru
Contact person for more information:
Press Secretary of RDIF
Mobile phone: +7 964 726 1773
Andrew Hayes / Maria Ignatova / Elena Kuza / Charlie Barker
Tel: +44 (0) 20 7796 4133