BOSTON (Oct. 4, 2005) — Boston-based Galaxy Tire & Wheel Inc. and Toronto-based Dynamic Tire Corp. have completed their merger, forming GPX International Tire Corp.
The companies announced their intended merger in June, and the deal was finalized Sept. 30. The combined company is on track to post sales of more than $300 million this year, with combined assets of about $100 million.
The flagship brands for GPX will continue to be Galaxy and Primex, the staples of Galaxy and Dynamic, respectively. The Galaxy brand will be considered the purpose-built and application-specific category, representing unique or best-in-class traits, GPX said. Primex will offer a broadline lineup with high value, the company said.
GPX said it has several exclusive marketing and distribution contracts covering the U.S. and Canada that involve radial medium truck and radial off-the-road tires. GPX expects to make its full range of tires available across the U.S. and Canada by Jan. 1, the companies said. GPX has seven distribution centers in the U.S.—in Massachusetts, New York, Pennsylvania, Tennessee, Alabama, Texas and California—plus one in Ontario.
Mike Knorr, director of marketing under Dynamic, said Galaxy dealers will have access to Primex products and vice versa. There is some overlap among major dealers, he said, but many of the brands' products complement each other. For example, Galaxy is strong in skid-steer tires while Primex is a force in forrestry tires.
In the case of limited-supply tires, the preference would go to the dealers who already had been carrying the line, he added.
The companies added that the merger will create several significant cost-saving and consolidation opportunities.
“This will allow GPX to concentrate on evaluating additional opportunities for product development and manufacturing designed to meet the ever-increasing market demand for Galaxy and Primex tires,” the companies said in a statement, adding that Galaxy's position with original equipment manufacturers will be strengthened by GPX's capabilities.
With the merger complete, Robert Sherkin, formerly president of Dynamic, will be chairman of GPX as well as co-CEO with Bryan Ganz of Galaxy.