Galaxy, Dynamic Tire merge
Galaxy Tire & Wheel Inc. and Dynamic Tire have merged into a new holding company, GPX Tire & Wheel Inc. However, Galaxy and Dynamic will continue to exist and operate as separate entities for the time being, according to both companies.
In an official statement, Galaxy said that as far as the customers are concerned, "nothing will change." That includes the salespeople with whom they are in contact.
Over time, the merger of Galaxy and Dynamic will result in expanded product offerings for both companies, and ultimately expanded servicing capabilities through the integration of additional distribution points.
Below are answers to some anticipated questions concerning the merger, courtesy of GPX:
1. Who took over whom? No one took over. It was a merger of equals.
2. Who is in charge of the new company? Bob Sherkin will be chairman of the combined entity and Bryan Ganz will be president. Sherkin and Ganz act as co-CEO's.
3. What will be the focus of the new company? GPX intends to be one of the dominant global suppliers of "work" tires, that is to say tires for the agricultural, industrial, transportation and construction markets. GPX intends to do this by building the best possible products that help the consumer get the greatest performance from their equipment at the lowest price per hour.
4. Will dealer pricing be changed? Galaxy and Dynamic both released new pricing as of June 1, and neither company is considering another price increase at this time.
5. Will programs currently in place for 2005 change? At this time, all programs and current deals set up for the 2005 year will not change.
6. Can a Galaxy dealer buy Primex products? No. Galaxy and Primex sales operations will stay separate at this time. Galaxy and Primex will look to expand their individual tire lines wherever possible, however.
7. Will Galaxy warehouses start carrying Primex and visa versa? Ultimately, this may happen, but no decisions regarding warehousing and shipping have been made at this time.
GPX is on pace to do more than $300 million in total sales for the 2005 calendar year.