ATD divestiture almost right on schedule
In February 2005, Investcorp Managing Director Steve Puccinelli told www.moderntiredealer.com that the firm usually holds onto newly acquired properties for four-and-a-half years. At the time, Investcorp was preparing to acquire American Tire Distributors Inc. (ATD) for $710 million.
In April 2010, Investcorp, along with two partners, is getting ready to sell ATD to private equity group TPG Capital. The deal is expected to close during the second quarter. (For more information about the sale, see TPG Capital to acquire ATD for $1.3 billion, posted yesterday, April 21, on www.moderntiredealer.com.)
In early 2005, Puccinelli said that Investcorp decided to invest in the tire industry "because it's a good industry that is not going away. We understand the industry and think ATD was the right way to invest in it. ATD and its management appealed to us. It's a superb management team, and in our minds, they do the best job" in their field. "Their business model will allow them to grow very quickly."