ATD in Canada: $27.3 million for 2 distributors
The American Tire Distributors footprint in Canada is getting larger, especially in Alberta.
On June 27, 2014, TriCan Tire Distributors Inc., an indirect, wholly-owned subsidiary of American Tire Distributors Holdings Inc., entered into an Asset Purchase Agreement with two Alberta, Canada-based wholesale distributors. They are:
1. Trail Tire Distributors Ltd., a wholesale distributor of tires, tire parts, tire accessories and related equipment in Canada.
2. Extreme Wheel Distributors Ltd., a wholesale distributor of wheels and related accessories in Canada.
Simultaneous with the signing of the Trail Tire Purchase Agreement and the Extreme Purchase Agreement, the parties closed both acquisitions for aggregate cash consideration of approximately $27.3 million.
According to ATD's filing with the United States Securities and Exchange Commission, the aggregate cash consideration was funded through borrowings under the company’s existing ABL credit facility.
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.