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.
