CHARLOTTE, N.C. (March 29, 2013) — American Tire Distributors Holdings Inc.'s (ATD) TriCan Tire Distributors Inc. subsidiary is acquiring Regional Tire Distributors Inc., dba RTD Ontario, for about $62.5 million.
The acquisition, expected to be finalized at the end of April, will significantly expand ATD's presence in the Ontario and Atlantic provinces, according to ATD. The distributor first entered the Canadian market in November with the purchase of TriCan.
Burlington, Ontario-based RTD Ontario operates five distribution centers in Ontario and four in the Atlantic Provinces and services about 3,100 customers, according to ATD.
"RTD Ontario has built a very strong presence in the eastern provinces in which they operate," said William Berry, ATD president and CEO. "These nine distribution centers will complement the current TriCan operation, which has a leading market position across the Prairie Provinces and in British Columbia."
ATD did not disclose RTD's annual sales.
ATD said it will continue to run its Canadian operation as a stand-alone business unit. Mike Kustra, currently president of RTD Ontario, will assume the role of president over the combined RTD/TriCan operation. Chris Fletcher, currently president of TriCan, has been named non-executive chairman of the combined operation.
ATD, which has 108 distribution centers in the U.S. and 15 in Canada, said it plans to add several distribution centers across Canada by opening greenfield locations and potentially acquiring other Canadian distributors.
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