MONTREAL— Groupe Touchette Inc., one of Canada's largest tire distributors is growing again, taking over family-owned Fastco Canada, one of Canada's leaders in alloy wheel design, manufacturing and distribution.
Terms of the agreement were not disclosed.
Groupe Touchette said the acquisition significantly expands its service offering to customers and provides Fastco Canada with greater access to new markets. It said the transaction "promotes strong synergies in product offering for the benefit of both companies' customer base."
This acquisition is the distributor's third in the past few years.
A little more than 10 months ago, Touchette completed the acquisition of National Tire Distributors (NTD) from American Tire Distributors Inc. (ATD). Two years ago, the company purchased fellow Quebec tire dealer Pneus Chartrand Distribution Inc., which operated both wholesale and retail businesses throughout the province.
The latest move, Groupe Touchette said, aligns with its growth plan, acquiring an "innovative company at the forefront of technology and driven by values of excellence."
Groupe Touchette said Fastco Canada share strong common values of excellence and excel in their respective markets.
Nicolas Touchette, co-owner and CEO of Groupe Touchette, said the companies will remain independent and "will continue to operate with common objectives to provide our customers with the best experience in the tire and wheel categories."
Glenn Chaplin founded Fastco in 1979 by selling auto accessories from his basement, eventually opening retail locations called Automotion and subsequently Lazer Auto. The business became wholesale only in 1989 with the incorporation of Fastco Canada.
Bob and Lee Chaplin, as well as the current leadership, will remain at the company.
Touchette said the collaboration "opens new avenues for both companies and allows us to expand our product offering as part of our strategic plan."
According to the tire distributor, Fastco has built long-standing partnerships with large Canadian retailers, vehicle manufacturers and tire manufacturers, developing products that have been " the hallmark of the Chaplin family, from design, engineering to the manufacturing of superior quality products for the automotive enthusiast."
"We will now be able to count on the highly strategic experience of Fastco Canada," Frédéric Bouthillier, co-owner and chief operating officer of Groupe Touchette, said.
"Fastco Canada has not only been at the forefront of forward-looking sectors such as electric vehicles but has created unique resources such as FastFinder that enable us to offer exclusive data and precise fitment solutions to our customers."
Fastco Canada President Glenn Chaplin said the acquisition opens new opportunities while expanding the Fastco's "position as Canada's leader in the design, production and distribution of alloy and steel wheels."
Fastco markets five brands of custom wheels — Braelin, Dialyn, HD, Fastco and Replika — along with steel wheels and offers mounted tire-wheel packages from its warehouse distribution centers in Vaudreuil-Dorion, Quebec, and Airdrie, Alberta.
The firm's corporate video states Fastco has 100,000 wheels in stock and ships up to 28,000 mounted tire/wheel units a month.
Prévost Fortin D'Aoust L.L.P. served as Groupe Touchette's legal counsel for the transaction, Ernst and Young as the financial adviser, KPMG as tax advisers and Fasken Martineau DuMoulin L.L.P. for legal financing.
André Touchette founded Groupe Touchette in 1979, servicing manufacturers, car dealers and independent customers. It operates 50 distribution centers, and goes to market under retail banners Tirecraft, Integra Tire, Signature Tire, Tireland/Ici Pneu, Tire Partners/Pneu Solutions, Pneu Select, MécaniPneu, Pneus Chartrand Mécanique, Pneus Express Mécanique and Touchette Motorsport.