Retail

ATD buys three more wholesalers in Canada

Posted on July 7, 2014

American Tire Distributors Holdings Inc. has followed up its recent purchase of two wholesale distributors in Alberta, Canada, with three more purchases through its TriCan Tire Distributors Inc. subsidiary in Canada.

The purchases are:

1. The wholesale distribution business of Kirks Tire Ltd. The company’s retail operations were not acquired and will continue to operate under its current ownership. According to ATD’s filing with the United States Securities and Exchange Commission (SEC), the parties closed the acquisition for aggregate cash consideration of approximately $73 million.

2. Regional Tire Distributors (Edmonton) Inc., a wholesale distributor of tires, tire parts, tire accessories and related equipment, for aggregate cash consideration of approximately $31.9 million.

3. Regional Tire Distributors (Calgary) Inc., a wholesale distributor of tires, tire parts, tire accessories and related equipment, for aggregate cash consideration of approximately $20.7 million.

All three companies are located in Alberta.

According to ATD’s SEC filing, the purchase price for the three wholesale operations totaled $125.6 million and is funded through borrowings under the company’s existing ABL credit facility.

ATD also purchased Trail Tire Distributors Ltd. and Extreme Wheel Distributors Ltd., both of Alberta, Canada, for $27.3 million on June 27, 2014. For details on those purchases, see ATD in Canada: $27.3 million for 2 distributors.

ATD purchased Edmonton, Alberta-based TriCan Tire Distributors late in 2012. Since then, it also has purchased, through TriCan, Regional Tire Distributors Inc., Wholesale Tire Distributors Inc. and Kipling Tire Co. Ltd.

Related Topics: ATD, Canada, Kirks Tire Ltd., regional tire distributors, Regional Tire Distributors (Edmonton) Inc.

Comments ( 0 )
More Stories
Article

Despite Lackluster Results, Dealers Still Speculate Volumes Will Increase Going Forward

According to the results of our survey, demand for passenger and light truck replacement tires declined again in April. Indeed, from a volume standpoint, the dealers reported they sold 0.9% fewer tires in April relative to the previous year’s period. The soft results marked the fourth straight month of lackluster results, including three consecutive months of negative volumes. The weak results come despite weather patterns and the disbursement of tax refunds normalizing.

The tall ceilings of Jeff Hall's Gardiners Road store give it a modern look and feel.
News

The Secret to Success for Midas in Canada: Tires

The owner of the two busiest Midas locations in Canada says offering an extensive tire inventory and more than a dozen tire brands has transformed his business. Consider Jeff Hall’s success a sign of what’s to come at Midas stores across North America.  

News

Six Hankook Tire Dealers Will Host Events for Veterans

Six tire dealers will help Hankook Tire America Corp. continue its partnership with the Disabled American Veterans (DAV) organization. Those dealers will host the group's Mobile Service Offices (MSO) at their stores so the DAV can reach out to veterans in those communities.  

Joe Venezia will lead Bridgestone's retail efforts at its 2,200-plus company-owned stores.
News

Bridgestone Retail Stores Have a New Leader

The 2,200-plus retail stores owned and operated by Bridgestone Americas Inc. have a new leader. Joe Venezia is the president of Bridgestone Retail Operations LLC (BSRO) effective June 19, 2017.  

News

Giti's Made-in-USA Tires Earn Fitment on Volkswagen Passat

Two sizes of the All Season Giti ComfortA1 tire will be featured as original equipment tires on the 2019 Volkswagen Passat. Giti Tire (USA) Ltd. says the tires represent the first OE fitment that will be manufactured at the company's U.S. tire plant.

News

Texas Governor Vetoes Used Tire Bill

Texas Gov. Greg Abbott has vetoed a bill that would prohibit the sale of unsafe used tires. "Texas does not need to impose new criminal penalties on people who put tires on cars.

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!