RDIF Leads Consortium to Invest in Russia's Largest Agriculture Tire Producer

RDIF Leads Consortium to Invest in Russia's Largest Agriculture Tire Producer

  PR Newswire

  MOSCOW, June 19, 2013

MOSCOW, June 19, 2013 /PRNewswire/ --

A consortium of the Russian Direct Investment Fund (RDIF), Titan
International, Inc., one of the world's largest manufacturers of agricultural
and industrial tires, and One Equity Partners (OEP), a global private equity
fund and a subsidiary of JP Morgan Chase & Co, have reached an agreement in
principle with Cordiant to invest in Voltyre-Prom, a leading Russian
agricultural and industrial tire manufacturer. The transaction is expected to
be finalized in the near future.

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As result of the investment the consortium will own a controlling stake in
Voltyre-Prom, with Titan International becoming its managing partner. The
consortium's investment will allow Voltyre-Prom to update its operations, grow
its production of specialty tires for international agricultural machinery,
reduce imports by shifting production to Russia and begin to explore export
opportunities.

Voltyre-Prom is the leading producer of agricultural and industrial tires in
Russia. Its market share in agricultural tires was 43% and 16% in industrial
tires in 2012. The company produced circa 1.35 million tires in 2012.

Kirill Dmitriev, CEO of the RDIF, said:

"RDIF completed this deal alongside world class strategic partners from both
the global industrial and financial sectors. The involvement of investors of
such scale underlines the growth prospects in the Russian agricultural sector.
The expertise and knowledge of our partners will help shift the production of
world-class tires that currently takes place overseas to Russia. This
investment meets the fund's objectives and represents an exciting opportunity
to get a foothold in this sector."

Maurice Taylor, Chairman and CEO of Titan International, commented:

"Titan has plans to grow its tire, wheel and track footprint in Russia and CIS
countries. John Deere, CNH, Agco and Caterpillar are just a few of Titan's
customers increasing their presence in Russia and CIS, and Titan will be there
to service them and end users of their equipment as this expansion occurs. It
is Titan's belief that the future growth of global farming and mining lies in
Russia and CIS countries."

Dick Cashin, Managing Partner of One Equity Partners, said:

"OEP and Titan welcome the opportunity to invest with RDIF to support the
growth and development of Voltyre. RDIF has been an exemplary partner
throughout the transaction. We are confident that we have the optimal strategy
in place to share capabilities, maximize the strength of Titan's brands,
support Titan's demanding international customers, and work with the very
capable management and workforce at Voltyre."

Dmitry Sokov, CEO of Cordiant, commented:

"The agreement with the consortium will enable Cordiant to focus on passenger
and truck tire markets. The deal also includes a 3-year distribution
partnership program, with Cordiant selling Voltyre's passenger, truck and
light truck tires. Cordiant plans to invest almost $550 million up to the end
of 2018 to expand its passenger and truck tire business. This will increase
production capacity by up to 12 million tires per year."

Russian Direct Investment Fund (RDIF) was established in June 2011 to make
equity investments primarily in the Russian Federation. RDIF's management
company is a 100% subsidiary of Vnesheconombank. In each investment it makes,
RDIF is mandated to secure co-investment that as a minimum matches its
commitment, thus acting as a catalyst for direct investment into the Russian
economy. Further information at http://www.rdif.ru

Titan International is one of the world's largest manufacturers of
agricultural and industrial tires with net sales exceeding US$ 1,8 billion in
2012. The company operates globally and manufactures under the Titan and
Goodyear brands. Its OEM customers include John Deere, AGCO, Case IH/Case
Construction, New Holland, Caterpillar and Kubota. Further information at
http://www.titan-intl.com

One Equity Partners. Founded in 2001, One Equity Partners, a subsidiary of JP
Morgan Chase & Co., currently manages US$ 11 billion portfolio of private
equity investments. By working in partnership with owners and managers, OEP
invests globally in transactions that promote strategic and operating change,
creating long-term value. Further information at http://www.oneequity.com

Cordiant - is a leading Russian producer of tires. It consists of 4 tire
plants and 5 divisions. The revenue for 2012 was 28 billion rubles. The
holding produces and supplies about 400 different types of tires. The main
brands (auto and light truck tires) and TyRex (cargo and agricultural tires).
Further information at http://www.cordiant.ru

For more information contact:Maria Medvedeva, Press Secretary of RDIF Mobile
phone: +7-964-726-1773 E-mail: mm@rdif.ru Hudson SandlerAndrew Hayes/Maria
Ignatova/Elena Kuza/Charlie Barker Tel: +44(0)20-7796-4133
 
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