There were fewer publicly announced tire dealership acquisitions in the United States than last year and in 2022.
“Debt service cost is creating more challenges for the models to work, in terms of paying the multiples people were receiving,” Tony Puckett, CEO of Sun Auto Tire & Service Inc., told MTD last summer.
High interest rates also played a role. However, many dealerships — including some of the country’s largest — continued to purchase other dealerships.
Based on store count, the biggest deal of the year was Mavis Tire Express Corp.’s acquisition of nearly 600 NTB Tire and Service Centers and Tire Kingdom Service Centers from TBC Corp., which happened in June.
The second biggest, based on number of locations involved, was Discount Tire’s purchase of Dunn Tire Corp.’s 25 retail stores in October, which expanded Discount Tire’s presence in Pennsylvania and facilitated the company’s entry into the New York market.
Rounding out the five biggest acquisitions of 2023, based on number of locations involved, were Green Bay, Wis.-based Pomp’s Tire Service Inc.’s acquisition of Royal Tire Inc., a 20-outlet company with locations in Minnesota and North Dakota (April); Allen Park, Mich.-based Belle Tire Distributors Inc.’s pick-up of 18 Tireman Auto Service Centers in Ohio and Michigan (February); and Sun Auto Tire’s purchase of Tire Outlet, a 14-store retail chain in Jacksonville, Fla. (January).
MTD’s 2024 Facts Issue contains a comprehensive list of tire dealership acquisitions that took place in 2023.
Click here to access MTD’s 2024 Facts Issue.