American Tire Distributors buys Hercules

Posted on January 28, 2014

American Tire Distributors Holdings Inc. (ATD) has purchased Hercules Tire Holdings LLC, according to the Securities and Exchange Commission 8-K filing on Jan. 24. 2014. Hercules Tire Holdings owns 100% of the stock of the Hercules Tire & Rubber Co.

TDW (Tire Dealer’s Warehouse) is included in the deal. The tire wholesale distributor is a division of the Hercules Tire & Rubber, with 15 warehouses in California, Arizona, Texas, Illinois, Ohio, Florida, Oregon, Seattle and Colorado. Hercules also has six distribution centers in Canada and a 250,000-square-foot warehouse in northern China

As a result, Hercules Tire Holdings will become an indirect wholly-owned subsidiary of ATD, which paid $310 million for the company. Another $10 million in additional consideration is contingent upon the occurrence of "certain performance-related and other post-closing events."

The purchase price is expected to be funded by a combination of the following:

* issuance of additional debt,

* an equity contribution from ATD's indirect parent (TPG Capital LP), and

* borrowings under ATD's credit agreement.

The consummation of the acquisition, which is subject to customary closing conditions, is expected to occur by the end of January 2014.

“Hercules is a well-run company with an outstanding reputation in the industry,” says William “Bill” Berry, CEO and president of American Tire Distributors Inc. “Joining forces with the Hercules team is a very positive step for American Tire Distributors.”

Related Topics: acquisition, American Tire Distributors, ATD financials

Comments ( 5 )
  • Topflight

     | about 4 years ago

    I agree.... This is just terrible!

  • See all comments
More Stories
John Van Heel says the pressure from online sales channels benefits bigger players, and ultimately helps Monro's acquisition strategy.

Online Tire Sales Don’t Scare Monro

“It’s nice to be wanted, but it’s even nicer to be needed.” In a nutshell, that’s Monro Muffler Brake Inc.’s philosophy when it comes to online tire sales.  


Brake Jobs Help Monro's Existing Stores Boost Sales

The fact that overall sales at Monro Muffler Brake Inc. increased in the first quarter of fiscal 2018 is hardly news. The company's aggressive approach to acquisitions helps it continually add to the sales column. But in the latest quarter, Monro's existing, comparable stores helped the bottom line, too. And that's news.  


Nexen Explores Partnership Options With an Investment Company

  Nexen Tire Corp. has signed a memorandum of understanding "to explore strategic partnership opportunities" with Mubadala Investment Co. The strategic investment fund has made a direct investment in the tire maker as part of the agreement.  

Zixin Liu, market planning director for Wanli Tire Corp., spoke at the 2017 Shanghai International Auto Show.

Who Is Wanli? Industry Analyst Breaks Down the Chinese Company

Following leaks from South Carolina in early June that Orangeburg County is expecting an investment of $1 billion from a Chinese company named “Wanli,” many in the tire industry wanted to know more details. Chief among them was the question, “Who on earth is Wanli?”


DSP Hires Bridgestone Veteran George Kingman

Dealer Strategic Planning Inc. (DSP) has hired George Kingman as the 20 Group’s associate director. Kingman brings extensive experience in sales and store management, productivity improvement and team building to DSP.

After 10 years in operation, DSP has updated its look.

DSP Unveils a New Logo

Dealer Strategic Planning Inc. (DSP) has unveiled a new logo for the company. The fresh, storefront design symbolizes the enhanced services DSP is offering to its 20 Group members.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!