Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Global Tire Report
    • ADAS
    • MID YEAR REPORT
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OPINION
    • SERVICE ZONE
    • BEST PLACES TO WORK
    • OBITUARIES
  • HUMANITARIAN
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • ADVERTISE
    • Events
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
March 13, 2014 02:00 AM

ATD: Terry's + Hercules = $1.1B sales

  • Tweet
  • Share
  • Share
  • Email
  • More

    CHARLOTTE, N.C. (March 13, 2014) — American Tire Distributors Holdings Inc.'s recent/pending acquisitions of Terry's Tire Town Inc. and Hercules Tire Holdings L.L.C. represent about $1.1 billion in additional annual revenue and $70 million to $80 million in potential operational synergies, according to ATD's fiscal 2013 10K filing with the Securities and Exchange Commission (SEC).

    ATD said Terry's Tire generated revenues and adjusted EBITDA of approximately $500 million and $14 million, respectively, in its most recent fiscal year, while Hercules generated revenue and adjusted EBITDA of approximately $600 million and $27 million, respectively.

    ATD is paying at least $656.5 million for Terry's Tire and Hercules — $345 million for all of the outstanding capital stock of Alliance, Ohio-based Terry's Tire Town and $311.5 million for Findlay, Ohio-based Hercules Tire.

    The final acquisition costs could be as much as $30 million higher due to “additional consideration contingent upon the occurrence of certain post-closing events,” ATD said in recent filings with the SEC.

    These and of other acquisitions plus new distribution centers opened in 2013 and on tap this year could push ATD's annual revenue to $5 billion or more, based on ATD's fiscal 2013 sales of $3.84 billion.

    Nearly 9 percent, or $340 million, of ATD's sales were generated in Canada last year, where the firm reports it has an approximate 12-percent market share in the replacement passenger and light truck tire segments. It distributes in Canada to about 8,000 customers through 21 distribution centers.

    Looking ahead to 2014, ATD noted a number of priorities, including:

    • Leveraging its infrastructure in existing markets.
    • Maintaining a comprehensive and deep tire portfolio
    • Utilizing technology platform to increase distribution dfficiency.
    • Continuing to expand in existing and new geographic markets, particularly by entering “previously underserved” markets as well as expand through new distribution centers and/or “opportunistic acquisitions.”
    • Expanding penetration of the emerging automotive dealership channel.
    • Growing TireBuyer.com into a premier internet tire provider.

     

     

    Related Articles
    ATD acquires Md. wholesaler TDI
    ATD buys Ontario wholesaler WTD
    ATD/TriCan buys Ontario wholesale biz
    ATD completes Hercules acquisition
    ATD to acquire Terry's Tire Town
    ATD cuts fiscal loss in half
    ATD completes buy of Terry's Tire Town
    ATD to close Terry's Tire Town HQ (Update)
    ATD drops further into red
    ATD suffers Q3 net loss
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    USTMA: Demand for passenger tires grew in 2023
    2
    Passenger tire imports up in Q3 but LT, TBR drop
    3
    Yokohama unveils ‘extreme traction' truck tire for snow, ice
    4
    Tire Business ranks the Top 75 Tire Makers of 2023
    5
    Kumho set to launch Solus all-weather passenger tire
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Global Tire Report
      • ADAS
      • MID YEAR REPORT
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OPINION
      • SERVICE ZONE
      • BEST PLACES TO WORK
      • OBITUARIES
    • HUMANITARIAN
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • ADVERTISE
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION