With New York City-based investment firm FdG Associates' purchase of Hercules Tire & Rubber Co. earlier today, "we moved from a co-op company to basically a marketing/business corporation," Hercules CEO Craig Anderson told moderntiredealer.com.
Hercules' 33 dealer/shareholders have agreed to tender their shares in the Findlay, Ohio-based company.
"The only effect is (that former shareholders) don't have ownership," says Anderson.
"But we'll maintain their territories and the private brand marketing concept."
Hercules' board of directors will be controlled by FdG but existing management staff will dictate the day-to-day operations of Hercules, according to Anderson.
"FdG is involved very heavily from the financial, envisioning and planning side, (but) operations are by the same staff that was here yesterday."
The decision to sell "came from the shareholders. They were looking to maintain (Hercules') tire program into the future while strengthening the (company's) financial base and creating some liquidity for themselves."
Shareholders were "very active" in negotiations.
"This is basically a move-the-company-forward transition," says Anderson. "Companies go through changes as they grow. Their needs change."
