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
News North Carolina Tire Dealer Association to Honor Members

On Friday night during the North Carolina Tire Dealers Association (NCTDA) 2018 Expo and Trade Show, the association will be honoring its Hall of Fame inductees and Dealer of the Year.

News New Jersey Sets Six Months to Comply with Lead Wheel Weight Ban

New Jersey became the ninth state to enact a ban on lead wheel balance weights on Jan. 8, 2018, and has set a six-month window for compliance. 

News Goodyear Launches Tire Maintenance Program for Shared Mobility Services

Goodyear Tire & Rubber Co. is launching an advanced tire maintenance pilot program with STRATIM, a San Francisco-based startup whose technology platform tracks, monitors and oversees fleet maintenance for tens of thousands of vehicles operated by more than 50 mobility services in more than 25 markets across North America.

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!