Current Issue

ATD completes Hercules acquisition

Comments Email

HUNTERSVILLE, N.C. (Feb. 6, 2014) — American Tire Distributors Holdings Inc. has completed its purchase of Hercules Tire & Rubber Co., paying $311.5 million for the Findlay, Ohio, tire distributor, importer and private brander.

ATD said the final purchase price may be as much as $10 million higher "contingent upon the occurrence of certain performance-related and other post-closing events." The closing purchase price also is subject to certain post-closing adjustments, including, but not limited to, working capital adjustments, ATD said in an 8K filing with the Securities and Exchange Commission.

The Huntersville-based company said it funded the acquisition from a number of sources, including the issuance of additional senior subordinated notes, an equity contribution of $50 million from ATD's indirect parent and borrowings under ATD's credit agreement.

The equity contribution was funded from proceeds of the sale by Accelerate Parent Corp. — ATD's indirect parent — of common stock to affiliates of TPG Capital L.P. and certain co-investors.

The sale of the senior subordinated notes — 11.5-percent interest, due 2018 — generated net proceeds of about $221.2 million, ATD said.

ATD carried out the purchase through ATD Merger Sub II L.L.C., an indirect wholly owned subsidiary, which acquired Hercules Tire Holdings L.L.C., a Delaware limited liability company that owns all of Hercules Tire & Rubber Co., the filing said.

More Polls>

TB Reader Poll

Previous | Published August 31, 2015

With the subject of Chinese-sourced tire garnering so much attention, do consumers really care about where their tires come from? How many of your customers ask about the origin of tires they’re buying?

None
18%
(34 votes)
10%
26%
(49 votes)
11 to 20%
13%
(25 votes)
21 to 35%
14%
(27 votes)
36 to 60%
21%
(39 votes)
All of them
8%
(16 votes)
Total votes: 190