Looking to solidify its presence in the Maryland market, McCarthy Tire Service Co. Inc. has purchased 151 Tire Systems Inc. of Federalsburg, Md., for an undisclosed amount.
The Wilkes-Barre-based commercial tire dealership acquired a commercial tire center and a 50,000-sq.-ft. Bandag retread shop-McCarthy Tire's fourth-and took on about 30 employees, according to McCarthy Tire President John McCarthy Jr.
``We have a pretty good presence in Maryland now, but we had nothing on the eastern shore of Maryland, which was the next logical step for us to go to take care of our customers and to pick up new customers,'' Mr. McCarthy said. He declined to discuss details of the deal.
With the purchase, McCarthy Tire operates 10 commercial stores, 14 combination commercial-retail outlets and two stand-alone retail outlets in Pennsylvania, Maryland, Virginia, New Jersey and New York. In Maryland, McCarthy Tire operates locations in Baltimore, Hughesville and Landover.
Federalsburg offers McCarthy Tire a good strategic base from which to service the eastern shore of Maryland and most of Delaware, he added, and 151 Tire also brings to McCarthy Tire a solid commercial and retread business that posted approximately $5 million in annual sales. Like McCarthy Tire, 151 Tire was a Bandag retreader and offered many of the same tire brands: Bridgestone, Firestone and Continental.
Former 151 owner Sean Callahan retired from the business, but his son Patrick continues as manager of the Federalsburg location, according to Mr. McCarthy.
Since the deal closed June 26, McCarthy Tire has invested in the retread plant by installing new Bandag equipment, which has enabled the facility to increase production 50 percent to about 200 units per day and should be able to grow beyond that, Mr. McCarthy said. He added that he has no immediate plans to expand the plant even though it sits on a 25-acre site and has room to grow, but the dealership has hired eight more employees because of the increased business.
``Business is good,'' Mr. Mc-Carthy said. ``We're up 17 percent this year so far'' over 2005 when the dealership reported $121 million in sales. Mr. McCarthy said he expects 2006 sales to surpass last year despite much higher fuel and other costs.
``We do charge a fuel surcharge. We just gotta keep a constant eye on it, that's all. We got good people who work for us, and we're constantly keeping an eye on (expenses). Be-cause of that, we'll be fine.''