Hercules acquires Florida-based tire distributor
The Hercules Tire & Rubber Co. is acquiring Tire Distributor Inc. USA (TDI), a tire wholesaler headquartered near Miami, Fla. Terms of the transaction were not disclosed.
TDI has two distribution locations in Florida; they generated sales of approximately $30 million in 2005.
"We are very pleased to bring TDI and its management team and employees into the Hercules family," says CEO and President Larry Seawell. "We had targeted the Southeast region for expansion given the opportunities for growth in that market, and it was important for us to find a strong operating platform in Florida that would allow us to expand our sales and distribution capabilities throughout the Southeast and into Latin America."
TDI's two owners, Christopher "Rocky" McDonough and Tony Lugioyo, are joining the senior management team of Hercules and will serve as general managers of the Southeast division of Hercules. McDonough says the transaction "allows us to keep our employees, who have been integral to our historic growth."
Hercules says it plans to open three more distribution facilities in the Southeast over the next 18 to 24 months.
"We look forward to working with the TDI team to build upon the terrific platform that they have put together as part of our TDW (Tire Dealer's Warehouse) operations," says Mike Distel, president of Hercules USA, a division of Hercules. "While the people and great service that TDI's customers have come to expect will stay the same, our plan is to transition the TDI trade name to our TDW name."
Hercules was acquired by management and FdG Associates in May 2005. The company has grown significantly since that time by expanding and strengthening its supply relationships and increasing sales in its existing markets.
The purchase of TDI represents Hercules' first "add-on" acquisition under the company's new ownership group.