JK Tyre will be acquiring Cavendish Industries Limited, which is located at Laksar, Haridwar. The Indian tyre maker will acquire one hundred percent equity in a binding term sheet with Kesoram Industries Limited.
Cavendish Industries Limited currently manufactures tyres, tubes and flaps. JK Group has agreed to acquire the enterprise for a value not exceeding INR 2200 crore, they will also be able to place 55% associates/group in the company.
Dr Raghupati Singhania, Chairman, JK Tyre, expressed, "The Transaction is a reflection of the inherent strength of the Company in undertaking acquisitions with turnaround potential and successfully delivering results to all the stakeholders in the business."
He further added, "This was recently evidenced by a similar success story in JK Tyre's acquisition of Tornel, Mexico."
JK Tyre currently sells truck, bus and passenger vehicle tyres in the country. They also plan to enter the two-wheeler and three-wheeler segment that is growing at a rapid pace in India.