K&M buys MotoStar, expands into New England

MERRIMACK, N.H. — K&M Tire Inc. has acquired MotoStar Tire & Auto Products Inc. of Merrimack, providing the Ohio wholesaler a distribution base for New England.

Financial terms of the deal were not disclosed.

MotoStar has warehouse distribution operations in Albany, N.Y.; Lisbon Falls, Maine, and Merrimack. The acquisition expands the number of K&M warehouse locations to 26 and the territory coverage to 27 states, K&M said.

Motostar has been an affiliate of Best One Tire/Zurcher Tire since 2003, managing that company's B1 Advantage associate dealer program through three distribution centers.

"We are very pleased to have the MotoStar employees and customers join K&M and will work hard to provide a large offering of high quality products, dependable deliveries, competitive pricing and excellent service," said K&M Vice President Cheryl Gossard.

Founded by Gene Bova in 1993, MotoStar has grown from a small storage facility and one truck to a regional wholesaler for Best One Retail Dealer Network, Bridgestone Americas' TireStarz, Continental Tire the Americas' Gold, Cooper Tire & Rubber Co.'s Mastercraft Tire Century, Kumho Tire USA Inc.'s Fuel and Yokohama Tire Corp.'s Advantage associate dealer programs, according to MotoStar's website.

"We have known K&M for a long time and respect their business model and focus," Mr. Bova said. "Adding K&M's strengths to MotoStar makes us very excited about the future."

K&M Founder and President Ken Langhals said, "As we continue to grow our company and serve our customers, we will always remain committed to our core values of making the customer the most important person in our business and stay focused on our mission of continuous improvement in all we do."

Founded in 1970, K&M employs more than 500 and distributes many tire brands along with a parts and equipment division. It also operates two associate dealer marketing programs — Mr. Tire and Big 3 Tire.

The Delphos, Ohio-based company reported sales of $350 million in 2016. MotoStar's annual sales were not disclosed.

Mr. Tire covers dealers throughout K&M's core distribution territory throughout the U.S. Heartland, while the Big 3 program was created in 2012 for dealers in territories where K&M isn't able to use the Mr. Tire name.

K&M uses the Mr. Tire dealer program, which it acquired in 2010, in areas west of Indiana, according to terms of a deal Mr. Tire's former owner, Universal Cooperatives Inc., struck with Monro Muffler Brake Inc., which operates more than 100 Mr. Tire retail stores in states east of Illinois.

K&M said it will be offering its Big 3 Tire program to dealers in MotoStar's distribution footprint.

Best One Tire said it's still working on a transition plan for the B1 dealer marketing program in the states where MotoStar operates.

K&M is in the process of revamping its leadership structure. Effective Jan. 1, Ms. Gossard will succeed her father, Mr. Langhals, as president, and Mr. Langhals will become CEO, a new position.