BOUCHERVILLE, Quebec — Tire wholesaler Distribution Stox has struck a deal to acquire the wholesale distribution division of Service de Pneus Lavoie Outaouais Inc. (Pneus Lavoie), which specializes in distributing tires for cars, trucks and commercial vehicles in Ontario, as well as the Outaouais region of Québec.
The transaction is expected to be completed at the beginning of 2022, pending the customary regulatory conditions for the transaction.
Financial details of the acquisition were not disclosed, but Distribution Stox said the business being acquired generates C$100 million in revenue annually.
According to Distribution Stox, retail service centers operating under the Point S banner, as well as a tire retreading facility, that service Québec and Ontario, are not part of the deal and will remain owned by Normand Lavoie.
Distribution Stox said Service de Pneus Lavoie Outaouais "will remain an important shareholder" of Unimax Ltd.
Mr. Lavoie was chairman of the board for several years, the company said, and "was also an important link in the transition of Unimax's business model."
Distribution Stox said the company transformed from a cooperative model to a corporate one under his leadership; he also helped bring the Point S concept to Canada.
Mr. Lavoie will serve as a special adviser to Distribution Stox throughout 2022 to ensure a smooth transition.
Pneus Lavoie operates three warehouses in Ontario — in Belleville, Brampton and Ottawa — and one in Gatineau in Quebec's Outaouais region.
With this deal, Distribution Stox, founded in 2016, will operate 21 warehouses with over l.5 million square feet of storage area, enabling the distributor to serve customers in six provinces, including the Atlantic region.
"This acquisition is in line with our growth strategy in Ontario and western Québec," President and CEO of Distribution Stox Bruno Leclair said. "We are very much looking forward to welcoming the wholesale distribution team from Pneus Lavoie to Distribution Stox, as well as continuing to offer quality products and superior service to all their customers."
"Thanks to the talent and commitment of our employees, we are leaving Distribution Stox a well-established, future-oriented company," Mr. Lavoie, owner of Service de Pneus Lavoie Outaouais Inc., added.
"Once this transaction is finalized, I will be able to concentrate on retail and retreading operations and continue our expansion,"
Distribution Stox said that during the coming months, it will be implementing a transition plan to leverage the strengths of these two teams.
"The addition of new product lines, use of new management tools, sharing of expertise and strength of our teams are examples of exciting projects that justify our confidence in looking ahead to a bright future," the company said.
Distribution Stox announced in October that Mr. Leclair is planning to leave the companies at the end of May 2022 for a "well-deserved retirement."
