TDS to sell 19 stores and nine retread plants
Bandag Inc. subsidiary Tire Distribution Systems Inc. (TDS) plans to sell 19 stores and nine retread plants to Southern Tire Mart LLC of Columbia, Miss., and Trans American Holdings LLC of Fort Smith, Ark.
Southern Tire Mart, a former Bandag retreader, will buy 14 TDS outlets and six retread plants.
As part of the deal, the company also will have the option to buy 10 out of the 11 TDS stores in Texas, plus all five of TDS' retread plants in "The Lone Star State."
Trans American Holdings will acquire five TDS stores and three retread plants, all located in Arkansas.
Trans American has been a Bandag retreader since 1996.
Financial terms of the sales have not been disclosed.
Bandag plans to sell more TDS locations this year, according to Bandag officials.
"Bandag is committed to TDS as it provides coverage and capabilities vital to the strength of (Bandag's) Strategic Alliance," says Bandag Chairman and CEO Marty Carver.
"Fleet customers count on Bandag to have the coverage in place to server their tire system needs. This objective is accomplished through independent dealers and TDS locations."
Prior to the sales announcements, TDS -- the second largest retreader in the nation -- had 31 retread plants that produced a total of 3,468 medium truck tire retreads per day, according to Modern Tire Dealer's Top 100 U.S. Retreaders List, which appears in the March 2003 issue of MTD.
Bandag enjoys 43.5% share of the U.S. truck tire retread market.