ATD has made 11 acquisitions in five years
Under ownership of Investcorp, Berkshire Partners LLC and Greenbriar Equity Group LLC, American Tire Distributors Inc. (ATD) has grown its footprint considerably over the last five years thanks to a number of major acquisitions.
In August 2005, several months after private equity firm Charlesbank sold ATD to Investcorp, ATD acquired Wholesale Tire Distributors Inc., Wholesale Tire Distributors of Wyoming Inc. and Wholesale Tire Distributors of Idaho Inc., which expanded ATD's reach across Utah, Idaho, Wyoming and parts of Colorado and Nevada.
In January 2006, ATD reached an agreement to acquire Silver State Tire Co. and Golden State Tire Distributors, which further boosted its presence in Nevada, as well as California.
Seven months later, ATD bought Minnetonka, Minn.-based Samaritan Wholesale Tire Co., which served customers in Minnesota and Wisconsin.
ATD continued its expansion in May 2007 with the purchase of Denver, Colo.-based Jim Paris Tire City, whose distribution centers in Denver and Grand Junction, Colo., shipped to some 1,500 customers. In July 2007, ATD reached an agreement to acquire Miami, Fla.-based Martino Tire Co.'s five distribution centers.
ATD finished 2007 by acquiring Homann Tire Wholesale, a big distributor in Texas with five warehouses throughout the state. The deal also gave ATD its first distribution center in Louisiana.
The company continued to put together deals. In October 2008, ATD bought Ft. Worth, Texas-based Remington Tire Distributors dba Gray's Wholesale Tire Distributors, which had warehouses in Ft. Worth and Houston. Together, the facilities served more than 3,000 customers.
Two months later, ATD announced it had paid $75 million to acquire AM-PAC Tire Distributors Inc., which gave it 24 additional distribution centers in 10 states, plus 40 retail stores. The retail outlets were later sold.
Now, Investcorp and its partners are gearing up to sell ATD to TPG Capital, a Ft. Worth-based private equity group. For more information about the transaction, TPG Capital and ATD's history under Investcorp, see the following articles on www.moderntiredealer.com: