TVS Srichakra, a leading two and three-wheeler tyre manufacturer in India, aims to buy a firm in the United States of America to expand its worldwide off-highway tyre manufacturing presence. This announcement came from Chennai. Last week, the board of directors of TVS Srichakra gave its nod of approval for the company to establish a subsidiary in the United States of America to purchase the operations of Super Grip Corporation, USA. Super Grip Corporation is an American corporation that has its headquarters in Tennessee. The company was established in 1984 with the primary objective of meeting the demand for industrial tyres that are renowned for their exceptional quality. The amount of the transaction was not made public by the corporation.
In the statement that it conveyed to the stock market, TVS Srichakra stated that the board of directors had allowed an overseas direct investment of USD 10 million for the formation of the subsidiary in the state of Michigan, which is located in the US. According to the announcement, “this investment will encompass, through the subsidiary, an acquisition of assets, liabilities and business operations of an existing corporation,” which will result in an expansion of our commercial activities in the United States of America.
The filing with the stock market also included information stating that the target firm is SG Acquisition Corporation, which is a corporation that was established on September 5, 2023, in the state of Michigan, United States of America. In turn, SG Acquisition will take over and accept responsibility for all the assets, liabilities and business activities that Super Grip Corporation owns. The transaction will be finalised over the next sixty days. SG Acquisition’s primary focus is off-highway tyre products. The transaction will be conducted through the use of cash, and the total cost of the acquisition, as well as the price at which the shares will be purchased, will be known at the time of investing in SG Acquisition.
The planned acquisition by TVS Srichakra is in keeping with the company’s goals for expanding its presence in the off-highway tyre industry. The business recently invested in a new factory at its Madurai, Tamil Nadu location, which allows it to produce off-highway tyres at twice the previous capacity. According to a statement released by the corporation, the majority of this expenditure would be put towards targeting international markets.
The director of TVS Srichakra, S Ravichandran, was quoted as saying, “We view the proposed Super Grip transaction with excitement.” The firm is an excellent match for our strategy of expanding our off-highway tyre business on a worldwide scale.
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