Yokohama Rubber Co. has reached an agreement with global investment firm KKR and other concerned parties to purchase all of the shares of Alliance Tire Group. The deal is valued at approximately $1.17 billion and is expected to close July 1, 2016.

This move by Yokohama will help expand the tiremaker’s commercial tire business. Currently, YRC does not produce or manufacturer tires for forestry or agriculture machinery, and the purchase of ATG will increase Yokohama’s product offerings, the tiremaker said.

Earlier this month Yokohama denied rumors that the deal to acquire KKR’s majority shares was official.