RAMSEY, Minn. — Heartland Tire Service has made a big jump toward its latest goal: Growing to 50 locations.
The Ramsey-based dealership recently acquired eight Eastern locations of Graham Tire, including five in Iowa — Graham's headquarters were in Spencer, Iowa — and three in Minnesota.
Family-owned Heartland purchased the locations from Bob and Martha Graham. The sale also included Graham's agriculture east distribution business, but another entity purchased the consumer and commercial wholesale business.
The 16 Western locations of Graham Tire in Nebraska and South Dakota were not part of the deal.
Financial details of the acquisition were not disclosed.
The move expands Heartland Tire's network to 28 locations — 27 retail/commercial dealerships and one retread plant.
Heartland President David Mitchell said the move joins two dealerships with similar philosophies.
"I'm a small-town person, from northern Minnesota, and we value people," Mr. Mitchell told Tire Business. "(Graham Tire) values people. It was a good fit for us and for them."
Heartland will retain the Graham name, as well as 190 employees. Heartland now employs about 290.
Mr. Mitchell said Heartland originally had plans to grow to 20 locations, but it now hopes to grow to 50 within the next decade. He said the company is working on several deals currently.
"The strategy is growing, which creates better efficiencies and better purchasing power," Mr. Mitchell said. "It's improves your processes … all of that is important. More volume. Better people."
Graham Tire did not comment on its decision to divest the stores.