SAINT JOHN, New Brunswick — The majority owners of Coast Tire & Auto Service have acquired the 49% ownership share held by Goodyear Canada for the past two decades, giving them 100% control of the 38-year-old retail and commercial dealership.
Goodyear Canada had held an equity stake in the Saint John-based dealership since 2002, when the current owners' group and Goodyear bought the company from company founder Malcolm Baxter.
Financial terms were not disclosed.
The move has been in the works for several years, according to Ron Outerbridge, president and CEO, who said the dealership's employees "have been instrumental in growing the business in the Maritime provinces."
Coast Tire is the largest independent tire dealership in the Canadian Maritimes, operating 26 points-of-sale in three provinces — New Brunswick, Nova Scotia and Prince Edward Island — in addition to a truck tire retread and wheel-refinishing plant in Moncton, New Brunswick.
"We as a management team are proud to have such an exceptional group of loyal employees who have built this organization," Outerbridge said. "Being a locally owned business has always been important to us and our employees have driven our success."
John Correia, vice-president of sales and marketing, said, "Strong connections to our communities help us better serve our customers. This new phase of the business opens opportunities to expand our product and service offerings and expand the retail and commercial service business."
"Our motto is Real People, Real Service," Correia added. "That is the core value for the senior team. We have always been committed to strengthening the business and providing exceptional service."
Correia credited Goodyear Canada with being a great shareholder and partner over the past couple of decades.
Besides Outerbridge and Correia, the ownership group includes Peter Coleman, vice president of finance and administration; and Gary Mott, director of retail operations.
Goodyear said it believes this transaction "positions both companies for stronger growth opportunities in the future."
Goodyear continues to be a minority owner in one other dealerships in Canada: Fountain Tire.