BOUND BROOK , N.J. (Dec. 14, 2001)—Somerset Tire Service Inc. has agreed to buy 18 Wholesale Tire Co. retail stores on Long Island and in the New York metro area, pushing STS' retail network to 101 stores in New York, New Jersey and Pennsylvania.
Terms of the pending deal were not disclosed. Bayshore, N.Y.-based Wholesale Tire Co. will retain five retail stores in upstate New York.
“This acquisition will allow STS to continue our ambitious growth strategy in the tri-state area,” said Bill Caulin, president of STS, in a prepared statement. STS first opened a store on Long Island in 1999 and has opened four since.
WTC employees affected by the transaction will become employee-owners of STS through the latter's employee stock ownership program. WTC Owner Bib Lico called the deal a “win-win” situation for all involved.
The new stores will add about $24 million in annual sales to Somerset Tire's ledger, pushing STS to more than to $100 million in annual retail revenue.
STS also operates seven wholesale centers, serving the tri-state area and Massachusetts and generating about $25 million in annual sales. In early November, it acquired Ramapo Discount Tire Centers of Mahwah, N.J., with six retail and one wholesale centers.
The 18 WTC stores will be renamed STS gradually, a spokesman said, and will be switched over to STS' products and services. That means they no longer will operate as American Car Care Center-affiliated outlets, although STS will honor warranties for an as-yet-to-be determined length of time; it has not yet been determined what course of action ACCC will take regarding this territory.
STS is a member of the Tire Alliance Groupe, featuring Continental, Firestone, Michelin and Toyo brand tires.