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January 28, 2014

American Tire Distributors buys Hercules

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.”

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comments

  1. Alpio | January 30, 2014 at 10:27AM
    This is not good.. all ATD is doing is buying there competition....

  2. Jim | January 30, 2014 at 12:41PM
    Interesting, I wonder how long it will take ATD to flush out Bill T. the President of Hercules and how long will it take for ATD to find out Hercules International (Joe R.) has been buying defective tires from their suppliers for years and sneaking them back into the USA via Canada? A short investigation by the DOT and a couple of Hercules suppliers will pay millions in fines.

  3. Duncan | January 30, 2014 at 10:33PM
    RE: PRICE QUOTES

    HERNANDEZ IMPORT INTERNATIONAL LTD

    PO BOX 33833KLA UGANDA

    PLOT2/4 INDUSTRIAL AREA

    TEL:256782493743

    FAX 25641;345597

    E-godfrrey2008@yahoo.com

    E- lambart873@gmail.com

    We are a registered company under the Companys act 100 and

    commission agency working for various import companies in the East

    African region.

    We currently have an established, credible and big client/buyer who

    has been purchasing goods in Asia and Kenya etc but after a bad

    experience with the Asian market, buyer has contracted us to source

    for Them and established credible, long term supplier. To that end

    Since our client has already in place urgent LPOs with backing

    Contracts and since this is going to be on a long term basis with

    large volumes each year, So please do avail us the prices for your

    goods c&f Uganda.

    Awaiting for your soonest, kind response and further advice.

    Regards

    Duncan Elvis

  4. John | February 03, 2014 at 08:58AM
    With a terrible bottom line and EBIT the equity company now writing cheques has no other choice but to scale and get this to the point they can bale and hope some other suckers will buy this mess...rumours have it they treat there employees terrible and have taken things away from them..how else you going to pay for these things.

  5. Topflight | February 07, 2014 at 11:49AM
    I agree.... This is just terrible!

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