American Tire Distributors (ATD) Inc. has agreed to buy Silver State Tire Co. and its Golden State Tire Distributors affiliate, giving the company its first presence in Nevada and broadening its distribution footprint in northern California.
Silver State Tire and Golden State Tire service 1,250 customers from five distribution centers across Nevada and northern California. The company was founded by Ed Stocker in 1982 with its first distribution center in Reno, Nev.
Mr. Stocker, 71, plans to retire after the deal closes at the end of January. Terms of the deal were not disclosed.
``The addition of Silver State Tire and Golden State Tire enhances American Tire Distributors' coast-to-coast service level,'' said Richard P. Johnson, ATD chairman and CEO.
``The Northern California and Nevada markets hold remarkable potential, given the population growth in these areas. We look forward to supporting and growing with the tire and custom wheel dealers in these expanding markets.''
ATD operates 71 distribution centers servicing 39 states.
Separately, ATD has quadrupled its distribution capacity in Salt Lake City, moving to a 115,000-sq.-ft. facility in the western part of the city.
ATD will employ a warehouse management system at the new center that it said will improve the accuracy of inventories and enable it to receive and ship products more efficiently. The firm also will use a computerized routing system with global positioning system receivers on all delivery trucks to permit tracking of orders from door to door.
The new center will give dealers in Utah access to a broader range of products and brands, from tires and custom wheels to tire supplies and equipment, Mr. Johnson said. The new facility, in the Ninigret Complex, replaces a 30,000-sq.-ft. center that was located more centrally.
ATD expanded its presence in Utah and the Inter-Mountain West market in August, buying Wholesale Tire Distributors Inc., which serves 2,700 customers in nine states from warehouses in Salt Lake City, Casper, Wyo., and Boise, Idaho.
``The combination of this new distribution center facility and the hard-working, customer-focused team of colleagues that joined ATD from Wholesale Tire makes me very optimistic about our future in the Inter-Mountain West market,'' Mr. Johnson said.