J K Tyre acquires Cavendish Industries for Rs 2,200 crore
Leading Indian tyre manufacturer JK Tyre and Industries on Monday announced the completion of acquisition of Cavendish Industries at an enterprise value of Rs.2,200 crore.
"With the completion of acquisition of Cavendish Industries Ltd., JK Tyre further consolidates its leadership position in the tyre market, more so in truck and bus radial segment," said JK Tyre chairman Raghupati Singhania in a statement.
The acquisition brings three Birla tyre business undertakings housed in Cavendish Industries located in Laksar, near Haridwar in Uttarakhand, into the JK Tyre fold and raises its plants count to 12 - nine in India and three in Mexico.
The acquisition funded by a mix of internal accruals and debt will make Cavendish a subsidiary of JK Tyre.
"This acquisition is in line with strategic vision of JK Tyre becoming one of the top tyre companies of the world having a well-rounded portfolio of product offerings, both for domestic as well as for international markets," the company said in the statement.
With Cavendish in its kitty, JK Tyre will benefit with additional truck and bus radials capacity, while also getting access to two and three wheeler tyre market.
Present in over 100 countries, JK Tyre also has interests in cement, paper, oil seals, auto components, defence electronic systems and others.