Tire dealership mergers and acquisitions in 2022 were characterized by an increase in activity at the commercial and wholesale levels. Here’s a look at some of the most significant tire dealership acquisitions of the year.
Transactions are listed in chronological order, based on when they were announced. Financial terms of listed deals have not been disclosed.
U.S. AutoForce LLC/Max Finkelstein Inc. (first quarter)
Appleton, Wis.-based U.S. AutoForce LLC – already one of the largest wholesale tire distributors in the U.S. - became a coast-to-coast operation when it acquired Astoria, N.Y.-based Max Finkelstein Inc. in February 2022.
One of the largest independent tire distributors in New England, Max Finkelstein had 15 distribution centers in eight states, including its native New York, plus New Jersey, Maryland, Pennsylvania, Connecticut, Massachusetts, Vermont and Maine.
The purchase followed U.S. AutoForce’s acquisition of Atlanta, Ga.-based Treadmaxx Tire Distributors in 2021. At the time, Treadmaxx had 14 distribution centers across seven states. (In 2018, Treadmaxx and Max Finkelstein formed Tire Distributors of America LLC, which was described as “a wholesale buying group” designed to leverage the combined purchasing power of both firms.)
Max Finkelstein and U.S. AutoForce also share a number of suppliers, including Goodyear Tire & Rubber Co.
U.S. AutoForce currently operates more than 62 distribution centers throughout 45 states.
Mavis Tire Express Services Corp./Jack Williams Tire Co. (second quarter)
Based on number of locations, Mavis Tire Express Services Corp.’s acquisition of Jack Williams Tire Co. turned out to be the largest tire dealership M&A event of 2022.
Under the direction of its chairman, Bill Williams, Jack Williams Tire – based in Moosic, Pa. - developed into a multi-state powerhouse, with 39 retail outlets, plus 11 distribution centers that served more than 5,000 customers throughout Pennsylvania, Delaware, Maryland, New Jersey and New York.
The Mavis-Jack Williams transaction excluded Jack Williams Equipment, which was formed in 2019 and distributes tire changers, lifts and other auto service machines.
The deal gives Mavis more than 20 locations in Pennsylvania and pushed the company to the top of the 2022 MTD 100. (Mavis had more than 1,140 locations when the MTD 100 was published last July.)
Jack Williams Tire was the 29th largest independent tire dealership in the U.S. at the time of the sale, according to the MTD 100.
American Tire Distributors Inc./Tires Now (second quarter)
Monro Inc., historically a buyer of retail tire operations, made news in June when it sold its Tires Now wholesale-distribution business to American Tire Distributors Inc. (ATD), which paid $105 million for it.
At the time of the sale, Tires Now had seven distribution centers across Kentucky, North Carolina, South Carolina and Tennessee that serve more than 3,500 customer locations.
Monro said the deal will allow it to focus on its network of more than 1,300 retail stores, around 865 of which sell tires. Monro also pledged to buy more than 90% of its tires from ATD.
In May 2022, Monro CEO Michael Broderick told investors that Monro’s distribution network was “too small” to compete with ATD, which has more than 130 locations.
Groupe Touchette/National Tire Distributors (second quarter)
Three months after ATD acquired Monro’s Tires Now business, the company completed the sale of its Canadian subsidiary, National Tire Distributors (NTD), to Montreal, Quebec-based Groupe Touchette Inc.
As part of the deal, ATD said it will supply Groupe Touchette and NTD with its Hercules and Ironman tires, while making various software and “productivity-enhancing tools” available to Groupe Touchette’s network, which includes a support center in Burlington, Ontario, plus regional locations throughout Canada.
The transaction was the latest in a string of acquisitions by Groupe Touchette. In 2016, it acquired the assets of Dealer Tire LLC’s Canadian division, which wholesales tires to Canadian car dealerships. And in 2018, Groupe Touchette purchased Atlas Tire Wholesale Inc., which expanded the company’s presence in Ontario.
Pomp’s Tire Service Inc./Tredroc Tire Services Inc. (third quarter)
Green Bay, Wis.-based Pomp’s Tire Service Inc. completed a major deal when it purchased Tredroc Tire Services Inc., which was based in Elk Grove Village, Ill., in September. The transaction included 17 locations, four retread plants and two distribution centers.
Tredroc was owned by Bob Barnes and Don Barnes Jr., who also own Allen Park, Mich.-based Belle Tire Distributors Inc., one of the country’s largest independent tire retailers.
The acquisition strengthens Pomp’s Tire Service’s presence in the Chicago, Ill., area. (One of Tredroc’s retread plants is located near Chicago. Two others are located in Michigan and another is located near Cleveland, Ohio.)
Paul Wochinske, president of Pomp’s Tire Service, told MTD that Tredroc’s market stratetgy “is very similar” to that of his company. Tredroc’s locations in Michigan were particularly “appealing” to Pomp’s Tire Service.
MTD’s 2023 Facts Issue, available later this month, features a comprehensive list of the major, publicly announced tire dealership mergers and acquisitions that took place during the past year. In the meantime, stay tuned to www.moderntiredealer.com for a look at some other tire dealership acquisitions of 2022.
