Canada’s Group Touchette completes NTD acquisition
On 7 September, American Tire Distributors (ATD) announced the completion of its Canadian subsidiary’s sale to Groupe Touchette, Canada’s largest locally-owned tyre distributor. By divesting the National Tire Distributors (NTD) business, the wholesaler says it is now “better positioned to serve its customers across the US” and to “invest in the enhanced innovation that is driving its transformation efforts.”
With the transaction complete, ATD states that it will advance its goal of reducing emissions by increasing supply chain efficiency and providing technology-enabled connectivity and efficiency through its diverse line of products.
ATD will continue supporting NTD and Groupe Touchette through a new commercial relationship, under which it will supply Hercules and Ironman brand tyres to the combined company and make its advanced analytics software and productivity-enabling tools available to Groupe Touchette’s network.
Driving strategy forward
“With the completion of this transaction, we now have more resources, focus and flexibility to build on our momentum and accelerate our transformation,” says Stuart Schuette, president and chief executive officer of ATD. “We are driving our strategy forward, rolling out new tools and capabilities and delivering even more connected automotive solutions for the customers and manufacturers we serve. Across ATD, we are excited to continue leading the pace of change in our industry by providing even more connected and better products and services than ever before.”
Schuette continues: “We look forward to continuing to support NTD and Groupe Touchette as their combined business grows in Canada. Through our collaboration, we will help pave the way in developing a cleaner tyre industry of the future. We wish the NTD team the best as they officially embark on their next phase as part of Groupe Touchette. I also want to recognise the hard work and dedication of ATD’s associates, who will continue to drive our success as we move forward.”
Moelis & Company LLC served as financial advisor to ATD and Davies Ward Phillips & Vineberg LLP and Troutman Pepper Hamilton Sanders LLP served as its legal counsel.