BOUCHERVILLE, Quebec — Canadian tire wholesaler Distribution Stox Inc. has agreed in principle to acquire the wholesale division of Newfoundland-based Simmons Tires and Service Centre Ltd.
The acquisition includes a 25,000-sq.-ft. distribution center in Pasadena, Newfoundland, as well as all of Simmons Tires' wholesale operations. Distribution Stox said it intends to have the facility operational under its ownership by early 2025, which, it said, "will enhance the delivery process for customers located on the west coast of Newfoundland."
The two Simmons Tires and Service Centre retail locations in Corner Brook and Deer Lake will become Point S locations, an independent tire and auto service marketing group with a strong presence in the U.S. and Canada.
Boucherville-based Unimax Ltd. manages the Point S network of independent tire and auto service retailers in Canada.
Distribution Stox President and CEO Jean Novak said the proposed transaction "combines key pieces of our growth strategy by granting Distribution Stox a key presence on the western coast of the island of Newfoundland as well as adding two locations to our Point S banner.
"Investing in the construction of a brand-new distribution facility represents another step into our continuous commitment towards servicing our customers in the region."
This marks the second acquisition in 2024 for Distribution Stox, which was founded in 2016. In mid-June, the company closed on the acquisition of the passenger car and light truck tire distribution division of Techno Pneu Inc. for the Bas St.-Laurent and Gaspésie regions of the province of Québec.
In addition, in April 2023, Distribution Stox acquired majority ownership of North Country Tire Distributors, which had distribution in the western provinces of Alberta, British Columbia and Manitoba.
Adam Buckle, chief financial officer for the Marine Group of Companies, called the latest acquisition an important milestone for the company.
"We will focus efforts on the retail side through our two locations," Buckle said. "We are convinced joining a banner as strong as Point S will truly help us grow our retail business while also giving us the leeway of keeping our customer centric DNA which has made our success so far.
"We are confident Distribution Stox will maintain the trustworthy client relationship built throughout the years."
Distribution Stox operates 29 distribution centers along with more than 250 delivery trucks across Canada.
