The consortium comprises private equity firms Russian Direct Investment Fund (RDIF) and One Equity Partners, alongside global tyre manufacturer Titan International. Titan’s participation in the deal represents the first industrial strategic partner RDIF has invested alongside. The deal is also One Equity Partners’ first investment in Russia.
Cordiant oversess three tyre plants and three divisions, supplying close to 400 different types of tyre. Its revenue for 2012 was $200m.
Titan said it plans further modernisation 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, it said.
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 match its commitment, acting as a catalyst for direct investment into the Russian economy. The firm recently partnered with Deutsche Bank to acquire a 2.45 per cent interest in Russian telecommunications company Rostelecom for $241m.
One Equity Partners is a subsidiary of JP Morgan Chase & Co., and manages $11bn portfolio of private equity investments.
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