WILKES-BARRE, Pa.—McCarthy Tire Service Co. Inc. acquired Friends Tire and Fleet Service Inc. of Hyattsville, Md., on Dec. 15, giving the Wilkes-Barre, Pa.-based dealership a foothold in the Baltimore-Washington market for the first time. Friends Tire had three commercial tire outlets in Hyattsville, Baltimore and Capitol Heights, Md., and a Bandag retread plant in Hughesville, Md., said John McCarthy, president of McCarthy Tire. These locations will be renamed McCarthy Tire.
"We've been looking into expanding into that market," Mr. McCarthy said. "The deal came up and it was a perfect fit for us."
The purchase price was not disclosed.
Mr. McCarthy said production at the newly acquired retread plant will be increased to about 110 tires per day, raising McCarthy Tire's total daily retread production to about 800.
McCarthy Tire also announced the hiring of Randy Gaetz as senior vice president of the company's new Maryland division. Mr. Gaetz formerly worked on national accounts and earthmoving equipment tire sales for Michelin North America Inc., Mr. McCarthy said.
"One of the reasons we decided to move away from home was because we had someone great to run it," Mr. McCarthy said.
Mr. Gaetz will supervise the new Maryland acquisitions, he said, "and anything else we decide to do down there."
McCarthy Tire also has opened new commercial tire outlets in Philadelphia and Vorhees, N.J. Mr. McCarthy said these two outlets will fill in gaps in coverage, because "there is such a concentration of business in those locations."
The new facilities will allow McCarthy tire to provide daily deliveries to customers in Philadelphia and southern New Jersey, he said.
With the recent additions, McCarthy Tire has 16 locations, 165 service trucks and about 300 employees.
"We're in an expansion mode," Mr. McCarthy said. "We have a good young management team and we're going to be aggressive."
The dealership will add four or five new locations in 2000, he said.