HALIFAX, Nova Scotia — Andy's Tire Group plans to acquire Coast Tire & Auto Service, effective March 1, doubling its size and creating a predominantly commercial-focused business with 46 points of sale, three distribution centers and three retreading plants across the Atlantic Provinces.
The merged operations, which plan to move forward under the Coast Tire brand, combine Coast's assets — 26 commercial and consumer tire/auto retail locations, a commercial retreading plant and wheel refinishing facility — with Andy's 20 stores, three distribution centers and two retreading plants in the Maritimes.
The Atlantic provinces of Canada include New Brunswick, Nova Scotia and Prince Edward Island.
Financial terms of the deal were not disclosed.
John Correia, Coast vice president of sales and marketing and one of four Coast shareholders, along with Coast President and CEO Ron Outerbridge, said the dealership was looking to expand in the market.
"It was a team effort that we both (Coast and Andy's) agreed that we have to take advantage of having a better product mix of manufacturers and taking it to a different level," Correia told Tire Business.
"We've always said in our market that one and one equals three. We're not sure that there's enough room for all three major manufacturers. Somebody had to work together.
"We, as Coast, were stagnant. We were holding our own, but we wanted growth. We wanted to get into growth, and so we worked on a package that was beneficial to two great companies, being Andy's Group and Coast Tire."
In February 2022 the owners of Coast Tire secured 100% control of the 40-year-old retail and commercial dealership by acquiring the 49% ownership share held by Goodyear Canada for over two decades.
Andy's Tire Group has been in business for more than 70 years and operates under the banners of Andy's Tire Shop, Scotia Tire Service, A-1 Tires, Miller Tirecraft and Fleet Retreading.
"We are thrilled to bring together these storied companies. This merger is more than a business decision; it's a strategic move to create the best commercial tire and automotive service network across Atlantic Canada," said Andrew Pye, owner of Andy's Tire and soon-to-be CEO of the newly formed business entity.
"Our combined resources, expertise and commitment to the Atlantic community will allow us to serve our customers even better."
Both dealerships said the merging of operations will be "measured and deliberate," with the goal of ensuring that business operations continue smoothly without any disruption to the supply chain or service delivery.
Coast uses the Goodyear retreading process and Andy's operates Michelin and Oliver retreading plants. Correia said the two dealerships are "working out the details" about continuing with all three operations. The companies are also working on carrying both Michelin and Goodyear tire brands going forward.
"The Maritimes is a big area in geography, but there's only 1.8 million people, so there has to be some synergies of bringing two good brands together," Correia said.
The combined operations will have more than 500 employees.
"Our goal is business as usual. There are going to be some synergies that we work on, but no jobs are being affected. We're growing. We're going to double the business. It's a big merge and that is our intent is to take two strong companies in Atlantic Canada and make them even stronger," Correia said.
"Everything will be run under the Coast Tire brand, which has been a well-known brand in the Maritimes," Correia said, but added that there was no timeline yet for the changeover.
