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September 27, 2018 02:00 AM

Finkelstein, Treadmaxx form wholesale buying group

Tire Business Staff
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    ATLANTA — Wholesale tire distributors Max Finkelstein Inc. and Treadmaxx Tire Distributors Inc. have formed a wholesale buying group, Tire Distributors of the Americas L.L.C., which will allow them to leverage their combined purchasing power and explore cost savings.

    Astoria, N.Y.-based Finkelstein and Atlanta-based Treadmaxx said the new company is structured as a "strategic membership group," which provides opportunities for additional members to join.

    The founding members will continue to operate independently in the marketplace.

    "This new venture allows our two companies and the members of the group to leverage our knowledge and best practices, eliminate redundancy in the supply chain and create greater purchasing power," Finkelstein President and CEO Ira Silver said.

    Treadmaxx President and CEO Mark Kauffman said, "As the tire industry continues to evolve, this will help strengthen the positions of all the members by leveraging best practices, which in turn will create a better value proposition for the independent tire dealer."

    The companies — among the largest wholesalers in the country with 29 regional tire distribution centers in 16 states between them — said they expect the venture to "create advantageous partnerships with vendors and suppliers in all aspects of business where symmetries exist among distributors. Target areas of cost savings range from equipment and supplies, to technology and insurance, with a primary focus on strategic tire manufacturers and proprietary offerings."

    Treadmaxx is the former wholesale business segment of Kauffman Tire Inc. It became an independent entity in January when Mavis Discount Tire Inc. acquired Kauffman's retail business. Treadmaxx operates 14 distribution centers in seven states with a fleet of 200 vehicles serving customers in Alabama, Florida, Georgia, North Carolina, Ohio, South Carolina and Texas.

    The company reported $260 million in wholesale-related revenue in 2016.

    Kauffman Tire was founded by Harry Kauffman in 1936. His son, the late John Kauffman, moved the company in 1975 to Atlanta from Ohio.

    Finkelstein operates 15 distribution centers across the Northeast and Mid-Atlantic, dealing in consumer, medium commercial, farm, specialty and OTR tires with an array of brands that includes Alliance, Carlisle, Continental, Cooper, Goodyear, Kumho, Michelin, Titan and Toyo.

    The company also supports a growing list of consumer and commercial manufacturer associate-dealer marketing programs, such as Goodyear's G3X and G3X Commercial, Pirelli FasTrack, Kumho Premium Fuel and Kenda Traction.

    Finkelstein, which will mark 100 years in business in 2019, opened its 15th D/C recently in Colonial Heights, Va.

    The new company will be based in Chattanooga. Messrs. Kauffman and Silver are co-presidents; Sean Franciscus, director of supply chain for Finkelstein, is secretary; and Brian Rose, vice president of purchasing and pricing for Treadmaxx, is treasurer.

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