Hercules purchase “fits very well” into ATD growth plan
This month, American Tire Distributors (ATD) acquired Hercules Tire & Rubber for approximately US$310 million. Further details of the deal beyond the news reported this week have been published by US trade publication Tire Review, who yesterday spoke about the purchase with Ron Sinclair, senior vice-president of marketing at Hercules Tire & Rubber.
Why did ATD decide to purchase Hercules?
Hercules is a well-respected, well-run company. As ATD and Hercules join forces, our mutual customers will benefit from an unsurpassed product offering, outstanding service and delivery, and a broad array of marketing programmes.
How does this purchase affect the long-term goals at ATD?
This purchase fits very well into the long-term growth plan for ATD. Hercules’ operations in the US and Canada complement ATD’s operations very well. The Hercules team has also done an outstanding job marketing the Hercules brand, which is one of the most sought-after proprietary brands in the industry.
How does it influence your Canadian and US Distribution? How does the deal affect your customers?
As ATD and Hercules join forces, our customers will benefit from an unsurpassed product offering, outstanding service and delivery, and a broad array of marketing programmes.
Do you plan on operating Hercules separately?
Over the weeks and months to come, the ATD and Hercules management teams have many topics to discuss and decisions to be made. Over time, our clear goal will be to develop a blueprint for leveraging the best practices of both companies as we join forces. In the short term, both the ATD teammates and Hercules teammates are focused on providing the outstanding service and support our customers have come to expect.
Are the different Hercules brands included in your deal? What are your plans for those brands going forward?
Yes, the proprietary Hercules brands are included. The Hercules team has also done an outstanding job marketing the Hercules brand, which is one of the most sought-after proprietary brands in the industry. Our goal is to build upon their success.