NEW YORK (June 22, 2006) — Hercules Tire & Rubber Co. has acquired Florida-based tire wholesaler Tire Distributor Inc. (TDI).
Terms of the transaction were not disclosed.
In announcing the TDI buyout, Larry Seawell, president and CEO of Hercules, said the company was “very pleased to bring TDI and its management team and employees into the Hercules family. We had targeted the Southeast region for expansion given the opportunities for growth in that market, and it was important for us to find a strong operating platform in Florida that would allow us to expand our sales and distribution capabilities throughout the Southeast and into Latin America.”
Findlay, Ohio-based Hercules, a wholesaler and marketer of private label and branded tires, itself was acquired last May by management and FdG Associates, a private New York investment firm. Hercules' purchase of TDI is its first acquisition under the company's new ownership group.
TDI has two distribution locations in Florida— in Medley, near Miami, and in Tampa—that last year generated sales of approximately $30 million. Hercules said it plans to open three more distribution facilities in the Southeast over the next 18 to 24 months.
As part of the transaction, TDI's two owners, Christopher “Rocky” McDonough and Tony Lugioyo, are joining the senior management team of Hercules and will serve as general managers of the Southeast division of Hercules.
“We value the approach to partnership that Hercules has demonstrated, and we are excited about the additional product offerings and resources they offer us,” Mr. McDonough said in a prepared statement. “At the same time, this transaction allows us to keep our employees, who have been integral to our historic growth. Teaming up with Hercules will give us the ability to become the dominant player in the Florida tire market.”
“We look forward to working with the TDI team to build upon the terrific platform that they have put together as part of our TDW (Tire Dealer's Warehouse) operations,” said Mike Distel, president of the Hercules USA division. “While the people and great service that TDI's customers have come to expect will stay the same, our plan is to transition the TDI trade name to our TDW name.”
Mr. Lugioyo said his company's acquisition by Hercules will allow it “to supercharge our growth in Florida and up the East Coast by focusing resources much more rapidly than we had planned on our own. At the same time, we will be able to provide a more comprehensive product and service offering to our loyal customers.”
TDI, which has 42 employees, was founded in 1996 and purchased by its current ownership in 2000. The company sells product throughout the Sunshine State, the Caribbean and Latin America. Its product offerings include all types of tires except aircraft tires.