American Tire Distributors Inc. (ATD) has acquired Samaritan Wholesale Tire Co. of suburban Minneapolis, expanding its service area across Minnesota and into western Wisconsin.
Samaritan Wholesale Tire's distribution center in St. Louis Park, Minn., will complement existing ATD centers in Sioux Falls, S.D., Des Moines, Iowa, and Lincoln, Neb., according to ATD Chairman and CEO Richard Johnson. Financial details of the deal were not disclosed.
Samaritan Wholesale services about 1,075 customers in eastern Minnesota and western Wisconsin from its 96,000-sq.-ft. warehouse in St. Louis Park.
Mr. Johnson called Samaritan Wholesale Tire a ``premier tire distributor'' in its geographic area with ``strong management, efficient operations and...an unwavering commitment to customer service.''
Jay Halvorson and Jim Dick, co-owners of Samaritan Wholesale Tire since 1973, will join ATD and remain involved in the management of the Minneapolis operation.
``The tire industry is rapidly evolving and the pace of change will accelerate over the next five years,'' Mr. Halvorson said. ``I am convinced that becoming a part of the American Tire Distributors' team will enable us to continue to grow our business.''
Samaritan Wholesale moved into its present location-a former Goodyear distribution center-in March, consolidating there from three separate locations, Mr. Halvorson said.
The business employs 40 and operates 20 delivery vehicles.
The Samaritan location will be ATD's 73rd distribution center.
A separate retail dealership by the same name, Samaritan Tire Co., based in Minnetonka, Minn., is unaffected by this deal; Samaritan Wholesale Tire sold that business three years ago to Chris Mortensen, who operates it independently, Mr. Halvorson said