HUNTERSVILLE, N.C.— American Tire Distributors Inc. (ATD) has reached an agreement to sell its Canadian subsidiary, National Tire Distributors (NTD), to Canadian wholesaler Groupe Touchette Inc.
Terms of the deal — the most significant acquisition in the 40-year history of Montreal-based Groupe Touchette — were not disclosed. The transaction includes 26 NTD distribution centers across Canada, giving Groupe Touchette access to 52 D/Cs, in just about every province.
The deal is expected to close in the fourth quarter of 2022, subject to customary closing conditions, including Canadian regulatory clearance.
Once the transaction is complete, Groupe Touchette said it will serve all major manufacturers and supply customers across Canada.
ATD President and CEO Stuart Schuette called the sale "an important step forward for NTD, ATD and the industry as a whole."
Once the deal closes, ATD essentially will no longer service the Canadian market.
Schuette lauded NTD, its customers and its 600 associates.
"Thanks to our agreement with Groupe Touchette, we are helping pave the way in developing a cleaner tire industry of the future, with technology-enabled connectivity and efficiency through our diverse line of products," Schuette said.
"We look forward to working with Groupe Touchette, as we push best practices and continue leading the pace of change in our industry."
As part of the agreement, ATD will supply Groupe Touchette with its proprietary Hercules and Ironman brand of tires while making its analytics software and productivity-enabling tools available to Groupe Touchette's network. Both have been a key focus for ATD over the last several years.