McCarthy Tire & Automotive Service Centers Inc. has purchased two former Merchant's Inc. commercial outlets, one of which includes a Bandag retread plant, from TBC Corp.
TBC bought Merchant's in April for $57.5 million and is integrating the 112-outlet chain under its Tire Kingdom Inc. subsidiary.
John McCarthy, president and owner of McCarthy Tire, said his Wilkes-Barre-based commercial dealership bought Merchant's commercial outlets in Landover, Md., and Manassas, Va., the latter of which includes the retread plant, which he expects to produce about 200 retreads per day.
Terms of the sale, which closed April 29, were not disclosed. Merchant's commercial business generated $23 million in sales in 2001, according to a Merchant's survey from 2002. McCarthy reported $73.6 million in commercial-related sales last year, making the Pennsylvania company the 11th largest commercial dealership in North America. ``We plan to change them over (to McCarthy Tire) fairly quickly,'' Mr. McCarthy said.
Also within the coming weeks, McCarthy Tire will close its Hyattsville, Md., commercial outlet and merge it into the nearby Landover site. Another existing store is about 30 minutes away from the Manassas site, but both will continue to operate.
With the acquisition, McCarthy will operate 22 commercial sites and three retread plants. Mr. McCarthy said the deal-which was initiated by McCarthy Tire and took only about three weeks to complete-is a big step for his dealership. Merchant's, which was primarily retail except for the two commercial sites, was McCarthy's biggest competitor.
Mr. McCarthy said his company, which also bought a former Ray Carr Tires Inc. shop in York, Pa., does not have other expansion plans in the works.