ATD gives more details on Target Tire purchase
In its official release, American Tire Distributors gave its reasons for buying Target Tire Inc. last week, and the result to independent tire dealers.
(For more information on the purchase, see "American Tire Distributors purchases Target Tire," Sept. 3; and "ATD´s Johnson: Logistics, ACCC tie have yet to be decided," Sept. 7.)
The acquisition clearly expands ATD´s service level across the southeastern United States. In its own words, here is what ATD has to say, without further comment from www.moderntiredealer.com:
"The biggest winners, as a result of this combination, will be the tire retailers that both companies currently serve," said Richard P. "Dick" Johnson, chairman and chief executive officer of American Tire Distributors. "By combining American Tire Distributors and Target Tire, we will realize many operational efficiencies.
"As we realize these efficiencies, both American Tire Distributors and our loyal customers will be better positioned to compete with the chain retailers that continue to expand within the marketplace."
Target Tire currently operates 11 distribution centers across Georgia, North Carolina, South Carolina, Tennessee and Virginia. These 11 distribution centers service approximately 1,800 customers across the above five states, as well as portions of Kentucky and West Virginia.
American Tire Distributors did not acquire the six Buffalo Tire retail operations. Mr. Johnson stated, "We remain committed to our independent dealers by not competing with them. We will not sell tires to our dealers on one side of the street, while at the same time open a store across the street to put them out of business."
Leonard "Bucky" Stein started the foundation of Target Tire by acquiring Avalon Tire in South Carolina in the 1960´s. Bucky and his son, Howard Stein, have spent the last 40 years building the Target Tire organization.
Bucky commented, "Both American Tire Distributors and Target Tire have succeeded by offering high levels of customer service, along with sales tools and programs to help the tire dealer build and maintain a successful business. I know this focus will remain as we combine the organizations."
Bucky and Howard will be involved with transitioning the business to American Tire Distributors. Mr. Johnson also added, "American Tire Distributors will be fortunate to strengthen our organization through the addition of Target’s management group."