Major merger: Purcell Tire acquires D&D Tire
The Purcell Tire & Rubber Co. has purchased D&D Tire Inc., a large commercial and OTR tire dealer based in Fernley, Nev. The combined company has sales in excess of $300 million.
The acquisition gives Purcell Tire 10 tire service centers located across Nevada and Southern Idaho; mine servicing sites in eight states, including Alaska; an OTR repair facility in Nevada; and a retreading plant in Idaho. It doubles the size of Purcell's mining division, according to Keith Butcher, executive president of Purcell Tire.
"The acquisition is a win-win for our companies and our customers," he says. "D&D Tire shares our commitment to driving growth and market share for our vendors and providing our customers with quality products and services."
The union also expands access to D&D Tire's proprietary Elite Tire Management System (ETMS), and strengthens Purcell Tire's ability to assist fleet managers in improving the performance of products.
"The ETMS program is designed to enable fleet and mine account managers and equipment managers to utilize the tire to its fullest capacity," says Britt Johnson, executive vice president of D&D Tire and director of the program. "ETMS provides a 'holistic' approach to tire management, resulting in the best possible operating costs for the customer."
D&D Tire's ETMS program initially serviced mining customers. Johnson says the program was rolled out to the company's commercial division with great success. It also fits nicely with Purcell's strength in retreading, particularly OTR tire retreading.
"We've made a significant investment in helping our customers recycle tires," says Purcell Tire founder Bob Purcell. "It doesn't make sense to buy new tires when you can recycle OTR tires so well. Adding our giant tire retreading capabilities to D&D's existing mine service business will be a true added value to the customer.
"Rubber is a cost that mining companies can control. Recycling tires reduces costs and saves resources. By helping our customers to reduce operating costs, we also are helping them reduce their carbon footprint."
For Bob Purcell, the acquisition is an exciting new chapter in the company's future.
"We share corporate cultures and a commitment to growth that truly benefits our customers and our associates," he says. "Together, we will continue to build our reputations for quality, service and outstanding workforces."
Paul DiMartini, president and founder of D&D Tire, will continue in his role as president of the company, which will be run as a wholly-owned subsidiary of Purcell Tire through the end of 2008. During 2008 and early 2009, D&D's operations will be transitioned into the existing operating units of Purcell Tire, and a single brand will be launched.
Johnson and Phil Brannen, director of mining for Purcell Tire, will serve as co-heads of the Global Mining Operation for the newly merged companies.
"Our 180 associates include an exceptionally qualified management team and some of the best trained and skilled technicians in the industry," says DiMartini. "This move will give our associates greater opportunity for growth and advancement in a dynamic industry."
Prior to the purchase, Purcell Tire had 67 outlets, broken out as follows: five commercial, 35 combined commercial/retail, 27 retail and four wholesale. It is the largest independent OTR tire retreader in the United States, according to Modern Tire Dealer's "Top 100 Retreaders List." The addition of D&D's plant gives Purcell Tire six retread facilities.