Jonathan Coslet, chief investment officer at TPG, said: “We welcome the opportunity to partner with Ares and the strong management team at ATD. We are pleased to offer our limited partners a significant return on their investment while allowing them to continue to participate in the growth of this best in class franchise.”
Bank of America Merrill Lynch, Goldman Sachs, and Deutsche Bank served as financial advisers, ATD said, and Ropes & Gray L.L.P. served as legal counsel to ATD and TPG. Sullivan & Cromwell L.L.P. served as legal counsel to Ares.
Separately, ATD said it plans to raise about $805 million by offering senior subordinated notes due 2022.
The distributor said it will use the net proceeds of the offering to redeem all of its outstanding 11.5-percent senior subordinated notes due 2018, plus pay a cash dividend to American Tire Distributors Holdings Inc., its parent company.
This latter move will enable ATD Holdings to fund a cash dividend or other payment to certain of its securityholders, ATD said.
ATD at this time did not disclose terms of the new notes offer.