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MUMBAI: US private equity giant Kohlber Kravis Roberts Co (KKR) is in preliminary talks to sell its 90% stake in specialty tire maker Alliance Tire. The company is reportedly valued at $1.51 billion, which would be the largest PE exit deal at this level. Japan’s Sumitomo Group, Germany’s Continental Tire, France’s Michelin Group and a number of private equity-led consortia are also involved in the review, three people with direct knowledge of the development said. Credit Suisse has been authorized to carry out the process, which is expected to progress in March. UBS advised the German tire maker, while Sumitomo Bank appointed Barclays as advisor. If successful, KKR (which acquired a 90% stake in Alliance in 2013) will exit with up to a 30% internal rate of return (IRR). KKR declined to comment. Emails sent to Sumitomo, Continental Tire and Michelin had not received a response at the time of publication. Alliance Tire CEO Yogesh Mahansaria did not imm...

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Biggest private equity exit? Kohlberg Kravis Roberts & Co may drive out of Alliance Tire

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