American Tire Distributors (ATD) has just added to its 69 warehouses with the purchase of Target Tire Inc.
Target Tire has 11 warehouses. Both ATD (Huntersville) and Target Tire (Jacksonville) are based in North Carolina.
Howard Stein, president of Target Tire, confirmed the sale. He said estate planning had a lot to do with the decision to sell to ATD. Howard´s father, Bucky Stein, 79, is founder and chairman of the company.
Financial terms were not disclosed.
Target Tire´s sales topped $100 million in 2003. "We are financially solid in every way," said Howard Stein at the 2004 Target Tire Dealer Meeting in Charlotte, N.C., earlier this year.
Dick Johnson, ATD´s chairman and CEO, said Target Tire´s six Buffalo Tire & Auto Service retail outlets in North Carolina were not part of the deal.
With the purchase, ATD continues to increase its reach in the United States dramatically this year.
In July, ATD agreed to purchase Texas Market Tire Inc., dba Big State Tire Supply. The acquisition expanded ATD’s service across Texas, Oklahoma and New Mexico.
It is not yet known how the purchase will affect Target Tire´s American Car Care Center program. Stein took over as ACCC chairman in June.
Prior to the purchase, ATD sold BFGoodrich, Bridgestone, Dunlop, Firestone, Goodyear, Kumho, Michelin, Pirelli, Continental and General major brand tires.
Target Tire inventoried Hankook and Cooper tires in addition to brands from Bridgestone/Firestone North American Tire LLC, Michelin Americas Small Tires and Continental Tire North America Inc.
ATD began selling selected lines of Continental and General brand tires in August.
When asked about supplier involvement in the purchase, Johnson said manufacturers had nothing to do with the deal. "Frankly, I think it surprised some of our suppliers."
