BETHLEHEM, Pa. (July 27, 2001)—Service Tire Truck Centers (STTC) has purchased Trenton, N.J.-based Volk Tire Inc. and plans to consolidate Volk Tire's commercial operation into its existing locations.
Volk Tire's owner, Bill Godley, is retiring from the tire business after 60 years and initiated the deal to sell his company to STTC, according to Walt Dealtrey, owner of Service Tire Truck Centers. Mr. Dealtrey said he has known Mr. Godley for several years and thought the business was a good match for his company. The transaction price was not disclosed.
Volk Tire operates a single commercial service center and Bandag retreading shop in Trenton. STTC will place Volk Tire's retread equipment in its three retread plants located in Bethlehem and York, Pa., and Milleville, N.J. Volk Tire posts an estimated $1 million in commercial sales annually, according to Mr. Dealtrey.
The commercial operation will be absorbed by STTC's Bethlehem and Croydon, Pa., and Willingboro, N.J., locations. A few key commercial sales employees from Volk will stay with STTC, Mr. Dealtrey said.
“We realize consolidation continues among dealers, manufacturers and customers, and our plan is to be the consolidator in our markets during this transition period,” Mr. Dealtrey said in a prepared statement.
STTC has 17 locations and posted $64.1 million in 2000 sales, making it the 10th largest North American commercial dealership, according to Tire Business data. In recent years, STTC has expanded by:
*Opening a commercial tire center and retread shop in Vineland, N.J., last November;
*Purchasing Baltimore-based Klausmeyer Tire Inc. in September 2000;
*Acquiring Monaghan Tire during 1999; and
*Buying C&H Tire Co. in Chambersburg, Pa., in 1998.
Mr. Dealtrey said STTC is not looking for dealerships to buy, but rather, his company takes advantage of opportunities that are complementary to its present operations. “We've turned down more deals than we've accepted over the years,” he said. “A lot of people call us. Usually, people are calling us as opposed to us calling them.”
The Volk Tire deal is STTC's only acquisition in 2001, but Mr. Dealtrey didn't rule out another one.
“The year's not over yet,” he said.