HUNTERSVILLE, N.C. (Sept. 3, 2004) – American Tire Distributors Inc. (ATD) has bought Target Tire Co. of Jacksonville, N.C., expanding its network of warehouses by 11 to 80.
Terms of the deal, which closed Sept. 3, were not disclosed. Target Tire's Buffalo Tire & Car Care retail business is not part of the deal, according to ATD Chairman and CEO Dick Johnson, who emphasized ATD's commitment to its independent tire dealer customers to stay out of the retail end of the business.
The deal comes just nine weeks after ATD closed a deal to buy Big State Tire Supply, a Lubbock, Texas-based wholesaler with nine warehouses in Texas, Oklahoma and New Mexico.
Target Tire's 11 warehouses are in Georgia, North and South Carolina, Tennessee and Virginia, states where ATD already operates 26 distribution centers. Mr. Johnson acknowledged there is some overlap between the two companies but said Target Tire's network also fills some gaps in ATD's reach.
“This was an opportunity to add to our management strength,” Mr. Johnson said, lauding Target Tire owners Bucky and Howard Stein and their management team. Mr. Johnson said he and the Steins have been friends for a long time, which helped accelerate the pace of negotiations.
“Bucky and Howard always said when they decided it was time to sell the business, they'd do it only to someone who would provide the best service for their customers,” Mr. Johnson said.
The Steins, who could not be reached for comment, will stay on with ATD for a short time during the transition, Mr. Johnson said.
In business for more than 35 years, Target Tire reports annual sales of more than $100 million. It is affiliated with American Car Care Centers Inc., Michelin Americas Small Tires, Bridgestone/Firestone's TireStarz and Continental Tire North America Inc.'s Conti-Gold program. It also distributes Cooper tires.