Warburg Pincus to buy control of Alliance Tire

Alliance Tire lost $14 million in the second quarter because of bad investments in the Turkish lira.

Fishman Holdings subsidiary Alliance Tire Co. ltd. (TASE: ALIN) today disclosed that international private equity fund Warburg Pincus is acquiring the controlling interest in the company at a value of $348 million. Warburg Pincus has invested $20 billion in 525 companies.

If the deal is closed, Alliance Tire will not be the only Israeli company in Warburg Pincus’s portfolio. It also controls Ness Technologies (Nasdaq: NSTC), 8.5% of SoftWatch Inc., and stakes in other companies.

If Warbug Pincus acquires Fishman Holdings’ 80% stake in Alliance Tire, it will have to deal with the company’s reputation, which was battered by bad investments in the Turkish lira. Alliance Tire lost $14 million in the second quarter because of these investments. The company reported a negligible 2% growth in revenue and a 20% erosion in gross profit for the second quarter.

Eliezer Fishman is the controlling shareholder in “Globes”.

Published by Globes [online], Israel business news - www.globes.co.il - on October 15, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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