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Royal Tire acquires Minn. Bandag franchisee

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ROCHESTER, Minn.—Royal Tire Inc. has acquired Midstates Retreading & Wholesale, a Rochester-based Bandag franchise, and its affiliated commercial service outlet, Northwestern Tire Co. Inc.

The move expands Royal's market reach in southeastern Minnesota and into northern Iowa and western Wisconsin.

Separately, Midstates/Northwestern owners Tim and Mary Gallagher sold their tire wholesaling business to U.S. AutoForce, the Combined Locks, Wis.-based tire and auto parts wholesaler that bought Royal Tire's wholesale business in 2011.

The acquisition, Royal Tire's third in the past year, expands the St. Cloud, Minn.-based commercial and retail dealership's network to 26 locations throughout Minnesota.

Financial terms of the deal were not disclosed, and Royal Tire declined to quantify the acquired company's sales but said it is taking on 25 employees in the deal. The retread plant, though, is capable of producing 150,000 units annually.

Tim and Mary Gallagher will continue to operate retail stores in Rochester, according to a letter to customers posted on U.S. Autoforce's website.

“This strategic acquisition will give Royal Tire the ability to reach into markets we could not get to before and is consistent with our long-term growth strategy,” Royal Tire President Mick Pickens said.

“It will also give us additional retread capabilities, which will result in greater efficiencies and significantly enhance service for our fleet customers.”

In business since 1948, Royal Tire is a family-owned and -operated company that has full service commercial and retail locations.

Other recent acquisitions include St. Paul Tire Inc. in Newport, Minn., and Tires Plus in Alexandria, Minn.

The latter enlarged Royal's network of retail stores to 10, including three that are combined retail/commercial.
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