BELL GARDENS, Calif.—Parkhouse Tire Inc. solidified its presence in Southern California last year, purchasing four competitors that have added more than $20 million in annual sales to the Bell Gardens-based commerical dealership. ``We're aggressive,'' President and CEO Jim Parkhouse said about the recent buying splurge. ``The market dictates what we need to do. Those of us who are going to survive are going to get bigger.''
Parkhouse Tire has taken that philosophy to heart.
In April of last year, North America's seventh largest commercial dealership acquired the inventory of Boynton Brothers Inc. in Bakersfield, Calif., and opened a satellite sales and service outlet in the city. Following the purchase, Boynton Brothers shut down.
Two months later, Parkhouse Tire bought several Cobre Tire off-the-road tire facilities from Bridgestone/Firestone Inc. and acquired Bob's Tire Service Inc., a large OTR, truck tire and retread dealership in Anaheim, Calif.
Then in September, the firm added Three B Tire Co. in Torrance, Calif., acquiring the dealership's operations from Bridgestone/Firestone.
The acquisitions will mean more than $20 million in additional revenue during a full calendar year, Mr. Parkhouse said.
Even with a half year of results from the newly acquired firms, Parkhouse Tire's 1998 sales soared 36.8 percent to $78 million. Growth from existing business also boosted that total, he said.
Mr. Parkhouse projects revenues will reach $90 million in 1999 and $100 million in 2000.
While sales have grown, the number of company locations has not.
Parkhouse Tire closed all of the acquired facilities, consolidating their operations into its own locations. This includes shuttering four Bandag retread plants.
Today, Parkhouse Tire has 10 commercial tire outlets—two more than a year ago, counting the Bakersfield satellite sales and service outlet.
It also operates five Bandag retread plants, including a new one in Fontana, Calif., where the company recently opened a commercial dealership on a 10-acre site.
That facility replaces a smaller commercial outlet in nearby Colton, Calif. Mr. Parkhouse said the company has retained a Bandag plant there but transferred truck tire servicing operations to Fontana.
In 1998, the company retreaded an average of 850 truck tires daily.
Despite its spate of acquisitions, Mr. Parkhouse has no plans to slow down the company's growth.
He intends to expand in Parkhouse Tire's Southern California marketing area, taking advantage of any opportunities that arise.
``Parkhouse Tire is planning to stay independent and continue to grow,'' he said.