ATD pays up to $365 million for Terry’s Tire Town
ATD has announced it will pay $345 million, with the possibility of another $20 million depending on certain provisions, in a deal to acquire Terry’s Tire Town, US publication Tire Review reports. The deal comes fewer than three weeks after closing a deal to buy Hercules Tire & Rubber Co. The deal gives ATD 11 more distribution centres in Ohio, Virginia, Maryland, New Jersey, New York, Connecticut, Massachusetts, Vermont and Maine. According to its website, Terry’s Tire Town facilities have “975,000 square feet of warehousing space” and daily inventory in excess of “one million tyres in all major brands and sizes.”
ATD and Terry’s Tire Town were both member distributors of the now demised American Car Care Centers marketing program, and in the wake of ACCC shuttering its operations, there were rumours that Terry’s and another former ACCC member distributor were eyeing starting a new regional retail dealer programme.
Terry’s is based in Alliance, Ohio, outside of Canton, where it was founded as a single retail store in 1972 by Terry Tollerton. The company expanded its retail footprint from Alliance into Canton and the surrounding area, and then turned to wholesaling as a means for further growth.
With the elder Tollerton retiring, son Will took the reins and added distribution centres in Virginia and Maryland. Exiting the retail business and with fresh capital from an investor group led by Talsiman Capital Partners, in 2011 Terry’s bought out fellow ACCC member distributors Summit Tire and Englewood Tire Wholesale, and added other greenfield warehouses to bolster its mid-Atlantic and New England presence.
“The opportunity for ATD and Terry’s Tire Town to join forces is very positive for the future of both companies and for our customers,” said Bill Berry, ATD president and CEO. “After the transaction closes, we will be able to offer all the services and programmes customers enjoy today, plus much more.”
The addition of those 11 warehouses gives ATD 163 total distribution centres in the US and Canada, making the largest single independent tyre wholesaler in North America. 32 of these have been added since the end of 2013. (Tire Review)