Omni United (S) Pte. Ltd. has acquired Interstate Tire Distributor Inc. (ITD), a California-based tire wholesaler.
Financial details of the transaction have not been disclosed, but Omni United says the acquisition of ITD “substantially accelerates the global growth strategy” of the company.
G.S. Sareen, CEO of Omni United, says the acquisition is an important step for the company's growth in the U.S.
"The acquisition of ITD is the next step in the evolution of Omni United as a tire designer and marketer and it will reinforce our presence in our core market, the United States. We are excited about the opportunity for growth, learning and innovation that this move towards vertical integration will present."
ITD was founded in 1963 in Los Angeles, Calif. Since then, the company has grown throughout Southern California and across the Southwestern United States to service more than 3,500 tire retailers throughout the western part of the U.S. ITD has distributed mid-tier brands such as Toyo, Nexen and Yokohama, as well as value brands like Mastercraft, Duro and Atturo, as well as Goodride, which is part of Omni United's offerings.
Sareen says the acquisition is perfect because it gives Omni United access to more than 3,500 retailers in an area where the company’s representation was very low. “We’re always looking to increase our footprint and our business. We’re basically an offshore company. We have offices and people in the U.S., but we really did not have a solid distribution system which would link us to the customer."
ITD's three principals (John Farkas, Scott Simpson and Matt Seavers) will remain as senior leadership and will run the day-to-day operations.
The ITD name, management, brands and products will stay the same, according to Sareen.
"ITD has been around since 1963. Customers have been buying tires since then so obviously they are doing something right. John Farkas and his team have got a tremendous amount of credibility and goodwill in the market. Omni United is 12 years old, and ITD has been there since 1963. It doesn’t make sense for us to change something which has stood for that long.”
There are no plans to replace ITD products with Omni products. One of the advantages of the acquisition is that there is no overlap of products between the two companies. “We don’t need to introduce something which will cannibalize the existing brand offerings,” Sareen says.
Once the acquisition is complete, ITD also will distribute other Omni United brands, including Timberland Tires.
“ITD will be a customer of Omni United. And ITD will buy from Omni United if the product is appropriate, the prices are competitive, and if there’s a need for Omni’s product in the ITD stable,” says Sareen.
ITD operates six locations in key tire markets in the US, including three in California (Commerce, San Bernardino and Fullerton); one in Arizona (Phoenix); one in Utah (Salt Lake City); and one in Nevada (Las Vegas).
Farkas, CEO of ITD says, "Omni United wants to grow ITD's existing business into a much larger company, with larger warehouse facilities and additional product offerings."
Omni United’s next step is to set up a mixing warehouse on the West Coast, according to Sareen. The warehouse will support ITD and other Omni United customers.
For more information on Omni United, visit omni-united.com. For more information about ITD, visit interstatetire.com.
