Alliance Fends Off Titan Move to Win GPX Bid - Tire Review Magazine

Alliance Fends Off Titan Move to Win GPX Bid

After a last minute bid by rival Titan International, Alliance Tire Group won bankruptcy court bidding for parts of GPX International Tire Corp.

Reports say that Alliance bid in excess of $50 million to top a $44 million bid by Titan. Alliance had previously agreed to pay $38.3 million for a portion of GPX, which filed for bankruptcy protection on Oct. 26 and has been liquidating its business.

Alliance is acquiring worldwide rights to GPX’s Galaxy and Primex brands, GPX’s U.S. customer lists and accounts, warehouses, GPX’s medium radial truck tire distribution business, and GPX’s South African tire distribution subsidiary, GPX Tyre South Africa (Pty).

The purchase will make Alliance one of the largest suppliers of OTR tires  in the U.S., Alliance said.
Manny Cicero, president of Alliance Tire USA
“If you look at everything Alliance has been building in North America and around the world, this purchase is an excellent fit,” said Manny Cicero, president of Alliance Tire USA. “Alliance has spent the last three years growing significantly in the face of a worldwide shortage of large tires and a global recession. Acquiring GPX’s pneumatic assets is part of our aggressive growth plan to deliver a broad product line of high-quality tires to our customers here in North America and around the world.”

Ex-GPX chiefs Robert Sherkin and Peter Koszo are buying Dynamic Tire Corp., GPX’s Canadian subsidiary, which will handle the sales and distribution in Canada of Galaxy and Primex brand OTR tires, the sale and distribution of medium radial truck and passenger car tires, and private label sourcing.

GPX International’s solid tire operations and Chinese plant are being sold to to a group of investors and former GPX management. That transaction includes the MITL, ITL and Brawler brands, as well as the company’s Gorham, Maine; Red Lion, Pa.; and Hebei, China, manufacturing facilities.

“We’ve invested $100 million in a new, state-of-the-art factory in India and have honed our Israel production facility to high efficiency,” said Yogesh Mahansaria, CEO of Alliance Tire Group. “With our own plants and the supplier relationships built by GPX, we have dramatically expanded our global network and given ourselves the opportunity to put each mold in the production facility that will produce the best value and quality for our customers.”

“GPX has built an outstanding engineering and development team, and an experienced sales force, both of which complement our Alliance Tire USA organization and the R&D team that has always stood behind them,” Cicero said. “This acquisition gives us the resources to even more effectively demonstrate our commitment to independent tire dealers, our responsiveness to the needs of original equipment manufacturers, and our dedication to deliver value to the equipment operators who ultimately rely on Alliance, Galaxy and Primex tires to deliver performance and return on their investment."

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