July 07, 2014
ATD buys three more wholesalers in Canada
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.