Equity group to buy 'significant' stake in ATD

HUNTERSVILLE, N.C. (Feb. 3, 2015) — A publicly traded equity investor has notified American Tire Distributors Holdings Inc. (ATD) it intends to buy a “significant” stake in the company that would make it an equal ownership owner with current majority shareholder TPG Capital L.P.

Terms of the transaction were not announced and closing is subject to certain conditions, according to ATD.

The buyer is identified as a fund managed by the Private Equity Group of Ares Management L.P., a publicly traded global alternative asset manager with approximately $80 billion of assets under management.

“This transaction is another significant milestone in ATD's growth story, and we are proud now to have two very notable investors as our primary shareholders,” said Bill Berry, ATD's president and CEO.

“The company appreciates the guidance TPG has offered for the past five years, and we look forward to the added experience and expertise of Ares as we continue to expand as the premier tire distributor in North America.”

The parties did not comment on the status of ATD Corp.'s pending initial public offering. TPG Capital paid approximately $1.3 billion in June 2010 for control of ATD.

ATD declined to comment on what percentage ownership stakes Ares and TPG would hold. TPG said earlier it intended to continue as a shareholder in ATD under the terms of the IPO being considered.

David Kaplan, co-founder, senior partner and co-head of Ares' Private Equity Group, said: “We are pleased to be able to partner with TPG to continue to grow ATD, a market leader with a demonstrated track record and significant expansion opportunities ahead.

“The company fits with Ares' longstanding private equity strategy of acquiring strong franchises with proven management teams and helping them realize their full potential.”

Ares Management's core investing sectors are private equity, real estate, tradeable credit and direct lending, according to a company investor presentation.