ATD completes sale of Canadian subsidiary NTD to Groupe Touchette

HUNTERSVILLE, N.C.— American Tire Distributors Inc. (ATD) officially has bid "au revioir" to its Canadian unit.

The wholesale distributor's sale of the Canadian subsidiary, National Tire Distributors (NTD), to Groupe Touchette Inc. is complete, making ATD "better positioned to serve its customers across the U.S. and invest in the enhanced innovation that is driving its transformation efforts."

ATD said it now can advance its goal of making the supply chain more efficient while reducing emissions.

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The tire wholesaler will maintain a relationship with Group Touchette by providing its proprietary Hercules and Ironman brands to the Canadian company, as well as making its analytics software and tools available.

Stuart Schuette, ATD president and CEO, said the conclusion of the deal gives ATD more "resources, focus and flexibility" to build and accelerate its transformation.

"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," Schuette said. "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."

Terms of the deal — the most significant acquisition in the 40-year history of Montreal-based Groupe Touchette — were not disclosed. The transaction includes 26 NTD distribution centers across Canada, giving Groupe Touchette access to 52 D/Cs, in just about every province.

With the transaction complete, Groupe Touchette will serve all major manufacturers and supply customers across Canada.

While announcing the acquisition on July 13, Nicolas Touchette and Frédéric Bouthillier, co-owners at Groupe Touchette, said they are "thrilled" to welcome NTD under the Groupe Touchette umbrella.

"In these challenging times, and in this ever-evolving industry, the environmental and technological realities bring a high complexity on a 360-degree perspective," the pair said in a statement. "Groupe Touchette's plan is to offer powerful solutions that drive efficiencies and streamline the supply chain for the benefit of customers, consumers and manufacturers. NTD's addition will help us reach our goal to best serve Canadians."

George McClean, president of NTD, said the transaction will benefit NTD, its "associates, business partners, customers and, ultimately, Canadian drivers."

"We are grateful to have been a part of ATD and for their vision, innovation and operational support that have positioned us for continued growth and success," McClean said. "Looking ahead, we are excited to become a part of Groupe Touchette, and we will work together to surpass the growing needs of our customers and consumers in Canada while increasing supply chain efficiency and reducing emissions."

Group Touchette, founded more than 40 years ago, said the combined business will continue to be headquartered in Montreal and will maintain a national support center in Burlington, Ontario, as well as regional offices across Canada.

According to the companies, Jefferies Group served as financial advisor to Groupe Touchette and Dentons and Prévost Fortin D'Aoust served as its legal counsel. Moelis & Company L.L.C. is a financial advisor to ATD, and Davies Ward Phillips & Vineberg L.L.P. and Troutman Pepper Hamilton Sanders L.L.P. served as its legal counsel.

Groupe Touchette has more than 1,000 employees and operates more than 24 distribution centers. Through its TireLink and DT Tire Banners, Groupe Touchette is servicing car manufacturers, car dealerships and independent tire retailers.

The company also serves Canadian consumers under the retail banners Tireland/Ici Pneu, Tire Partners/Pneu Solutions, Pneus Chartrand Mécanique, Pneus Express Mécanique and Touchette Motorsport.