Retail

What ATD gets for $685 million

Posted on February 20, 2014

According to the 8-K form filed on Feb. 17, 2014, with the U.S. Securities and Exchange Commission, American Tire Distributors Holdings Inc. (ATD) will pay $345 million to purchase Alliance, Ohio-based Terry’s Tire Town, plus up to $20 million in “additional consideration contingent upon the occurrence of certain post-closing events.” (For the report, click here.)

The purchase price is expected to be funded by a combination of the issuance of additional debt and other resources, including the existing credit agreement, according to the filing. In connection with the purchase, ATD entered into a debt financing commitment letter with Bank of America N.A. and Merrill Lynch, Pierce, Fenner & Smith Inc. on Feb. 17, 2014. The lenders have committed to a $300 million senior secured term loan

In late January, ATD paid $310 million (plus up to $10 million for performance-related and other post-closing events) for Hercules Tire Holdings LLC.

That adds up to a maximum of $685 million ATD will spend for the two entities purchased in the first two months of the year. What is ATD getting for that?

* Hercules Tire & Rubber Co.

* TDW (Tire Dealer’s Warehouse), the tire wholesale division of Hercules, with 15 warehouses in California, Arizona, Texas, Illinois, Ohio, Florida, Oregon, Seattle and Colorado, six distribution centers in Canada and a 250,000-square-foot warehouse in China.

* Terry’s Tire Town’s 10 distribution centers and one commercial tire operation in the mid-Atlantic, Metro New York, New Jersey and New England area.

Bill Berry, CEO and president of ATD, notes that with the recent transactions, the company will be able to enhance the services and programs it is able to offer is customers. ATD operates 152 distribution centers in the U.S. and Canada.

See also:

ATD to purchase Terry's Tire Town

American Tire Distributors buys Hercules

Related Topics: American Tire Distributors, ATD, Hercules, Hercules Tire & Rubber, Terry's Tire Town

Comments ( 1 )
  • Brandon

     | about 4 years ago

    Ever feel like we're watching the movie JAWS with the independent wholesalers being eaten like the residents of Amity Island??

More Stories
Hunter explains the purpose and function of wheel alignment procedures and the importance of proper vehicle maintenance to vehicle owners in its latest educational video.
News Latest Hunter Consumer Video Explains Why Cars Need Wheel Alignments

Hunter Engineering Co. has released an educational video for vehicle owners that explains why cars need wheel alignments.

Point S will work to expand its network of dealers thanks to a distribution agreement with Nussbaum Distributing President Mike Nussbam, left. He's pictured with members of the Point S team, Jim Richards, national cooperative recruiting executive; Walter Lybeck, CEO; and Clint Young, director of sales and business development.
News Tire Factory Looks to Expand Point S Brand With Nussbaum Distributing in Memphis

Tire Factory Inc. and Point S USA are making a big move to expand their network of tire dealers into the eastern half of the country. The company is partnering with Nussbaum Distributing Inc. in Memphis, Tenn., to distribute tires to four states.  

News MORE Tire Data! Fitment Group Merges with Size It Up

Two of the largest providers of tire and wheel fitment data have merged. The Fitment Group and Size It Up will operate under the Fitment Group brand and will based out of the corporate office in Duluth, Minn.

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!