CHARLOTTE, N.C. (Feb. 19, 2014) — American Tire Distributors Holdings Inc. (ATD) has agreed to acquire all of the outstanding capital stock of Alliance, Ohio-based Terry's Tire Town Holdings Inc. for $345 million.
The purchase price could be as much as $20 million higher due to "additional consideration contingent upon the occurrence of certain post-closing events," ATD said in an 8K filing with the Securities and Exchange Commission.
The acquisition is expected to close in late March or early April.
Founded in 1972 as a single retail store, Terry's Tire Town operates 10 distribution centers in nine states and a commercial tire operation.
Terry's first moved into wholesale distribution in 1984. Over the years, the company expanded from its Ohio roots into metropolitan New York, New Jersey, New England and the mid-Atlantic region. A 2010 recapitalization led by Talisman Capital Partners expedited the expansion, as did Terry's acquisitions of Summit Tire of Massachusetts and Englewood Tire Wholesale in 2011.
In 2011 Terry's exited the retail business after selling its seven retail stores in and around Alliance to Monro Muffler Brake Inc. to focus its attention on its wholesale and commercial tire businesses. Monro then began operating the Terry's Tire Town Auto Service Centers as part of its Mr. Tire retail store network.
ATD said the acquisition of Terry's will enhance its ability to serve tire and automotive service retailers in the New Jersey, Long Island and New England markets.
"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 ATD President and CEO William Berry in a press release.
This is the second major acquisition ATD has made so far in 2014. Earlier this month, ATD completed its $311.5 million acquisition of Findlay, Ohio-based Hercules Tire & Rubber Co., a tire distributor, importer and private brander.