Kal Tire to Acquire GCR Locations in Eastern Canada
Kal Tire and Bridgestone Canada have reached an agreement that will see Kal purchase 15 GCR Tires & Service stores, two retread plants and one OTR tire repair shop from Bridgestone. The transaction is expected to close during the fourth quarter of 2021.
Terms have not been disclosed.
The GCR locations and retread plants are located in Newfoundland, Nova Scotia, New Brunswick, Quebec and Ontario.
"These locations currently serve consumer customers, along with the commercial trucking, OTR, agriculture and mining industries," say Kal Tire officials.
Their purchase "will allow Kal Tire to serve more consumer, commercial and mining customers in the Canadian markets where it currently operates, as well as expand its footprint to include locations in eastern Canada."
Kal Tire currently has more than 250 commercial and retail tire locations stretching from British Columbia to Ontario. It also services more than 150 mine sites across five continents.
All 125 GCR employees who work at the soon-to-be-acquired locations "are expected to join Kal Tire upon completion of the transaction."
“At Kal Tire, we are driven to provide customers with best-in-class tires and service," says Kal Tire President Robert Foord. "To achieve this, we need to continue to strengthen our network of locations that are staffed by experts in the tire and service industry."
“This sale is a positive step for GCR employees and customers who have a bright future ahead as part of the Kal Tire organization,” says Scott Damon, chief operating officer, Bridgestone Americas.
“As Bridgestone and Kal Tire evolve for the future, this transaction will enable strategic growth for both companies. We look forward to building on our longstanding partnership with Kal Tire to drive additional growth in Canada for Bridgestone’s products, brands and mobility solutions.”
Bridgestone says it will continue to operate 59 GCR stores and 13 GCR retread plants in the western United States.
"GCR remains an integral part of Bridgestone’s commercial distribution strategy in the U.S. and is committed to serving commercial customers in a best-in-class manner, while continuing to drive growth and support future mobility solutions," say Bridgestone officials.
They add that the GCR stores included in the sale will conduct business separately from Kal Tire until the transaction closes.